SB2457 96TH GENERAL ASSEMBLY

LRB096 13177 JAM 27705 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB2457

Introduced 5/29/2009, by Sen. John J. Millner - Kyle McCarter - David Luechtefeld - Dave Syverson - Christine Radogno, et al.

SYNOPSIS AS INTRODUCED:

See Index

Amends the Election Code. Makes changes with respect to: the number of political committees a candidate may organize; designation of political committees to receive campaign contributions; limits on campaign contributions; prohibitions against campaign contributions from certain persons and entities; disclosure of independent campaign expenditures; disclosure of coordinated campaign contributions; filing of campaign finance reports; State Board of Elections actions that require open meetings; and Internet posting of complaints of campaign finance violations and disposition of those complaints. Amends the Illinois Procurement Code. Makes the pay-to-play prohibition against campaign contributions from certain State contractors applicable with respect to General Assembly members, candidates, and agencies. Effective June 15, 2009, but the State Board of Elections has 120 days to implement electronic reporting requirements.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning elections.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Election Code is amended by changing the heading of Article 9 and Sections 9-1, 9-1.4, 9-1.5, 9-10, 9-18, 9-21, 9-23, and 9-28 and by adding Sections 9-1.16, 9-1.18, 9-1.19, 9-1.20, 9-1.21, 9-1.22, 9-1.23, 9-2.5, 9-2.7, 9-8.5, 9-8.6, 9-8.7, 9-8.9, and 9-23.5 as follows:

(10 ILCS 5/Art. 9 heading)

ARTICLE 9. DISCLOSURE AND REGULATION OF CAMPAIGN

CONTRIBUTIONS AND EXPENDITURES

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

Sec. 9-1. As used in this Article, unless the context otherwise requires, the terms defined in Sections 9-1.1 through 9-1.23 9-1.13, have the respective meanings as defined in those Sections.

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

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

Sec. 9-1.4. "Contribution" means-

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

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

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

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

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

(5) does not include--

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

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

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

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

Sec. 9-1.5. Expenditure defined.

"Expenditure" means-

(1) a payment, distribution, purchase, loan, advance, deposit, or gift of money or anything of value, in connection with the nomination for election, or election, or retention of any person to or in public office, in connection with the election of any person as ward or township committeeman in counties of 3,000,000 or more population, or in connection with any question of public policy. "Expenditure" also includes a payment, distribution, purchase, loan, advance, deposit, or gift of money or anything of value that constitutes an electioneering communication regardless of whether the communication is made in concert or cooperation with or at the request, suggestion, or knowledge of a candidate, a candidate's authorized local political committee, a State political committee, a political committee in support of or opposition to a question of public policy, or any of their agents. However, expenditure does not include -

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

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

(2) a transfer of funds between political committees.

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

(10 ILCS 5/9-1.16 new)

Sec. 9-1.16. Regular election period.

(a) "Regular election period" means, for purposes of (i) contributions to political committees designated by established political parties and candidates for nomination or election to offices to be filled at a general election and (ii) independent expenditures benefiting candidates for nomination or election to offices to be filled at a general election, each of the following:

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

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

(b) "Regular election period" means, for purposes of (i) contributions to a political committee designated by an incumbent judge seeking retention in office and (ii) independent expenditures benefiting incumbent judges seeking retention in office, the period beginning on the date on which an incumbent judge declares his or her intention to seek retention in office and ending 90 days after the retention election.

(c) "Regular election period" means, for purposes of (i) contributions made to political committees designated by candidates for nomination or election to offices to be filled at a consolidated primary or consolidated election and (ii) independent expenditures benefiting candidates for nomination or election to offices to be filled at a consolidated primary or consolidated election, the period beginning on July 1 immediately following the date of the most recent consolidated primary election or consolidated election at which the office for which the candidate seeks nomination or election was filled and ending on June 30 immediately after the date of the next consolidated primary election or consolidated election for that office.

(10 ILCS 5/9-1.18 new)

Sec. 9-1.18. Labor organization. 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, including any parent, subsidiary, affiliate, branch, division, department or local unit thereof.

(10 ILCS 5/9-1.19 new)

Sec. 9-1.19. Corporation. The term "corporation" includes a corporation, limited liability company, partnership, limited partnership, limited liability partnership, professional association, professional corporation, professional practice, cooperative, sole proprietorship, or any other legally-recognized business entity, whether organized on a for-profit or non-profit basis, whether organized under the laws of Illinois or of another state. The term "corporation" shall not include a labor organization as defined in Section 19-1.18.

(10 ILCS 5/9-1.20 new)

Sec. 9-1.20. Association. The term "association" means any group, club, collective, membership organization, collection of persons, entity organized under Section 501 or 527 of the Internal Revenue Code, or other entity other than a natural person; except that an association does not include a political committee organized under this Article.

(10 ILCS 5/9-1.21 new)

Sec. 9-1.21. Affiliated person. "Affiliated person" means (i) any person with any ownership interest or distributive share of an affiliated entity in excess of 7.5% and (ii) for each affiliated entity, any "executive employee" as that term is defined in Section 50-37 of the Illinois Procurement Code.

(10 ILCS 5/9-1.22 new)

Sec. 9-1.22. Affiliated entity. "Affiliated entity" means (i) any parent or subsidiary or local of the entity, (ii) any member of the same unitary business group, (iii) any organization recognized by the United States Internal Revenue Service as a tax-exempt organization described in Section 501(c) of the Internal Revenue Code of 1986 (or any successor provision of federal tax law) established by the entity, or (iv) any political Committee for which any of the aforementioned is the sponsoring entity.

(10 ILCS 5/9-1.23 new)

Sec. 9-1.23. Statewide office. For purposes of this Article 9, "statewide office" means the offices of Governor, Lieutenant Governor, Attorney General, Secretary of State, Comptroller, and Treasurer.

(10 ILCS 5/9-2.5 new)

Sec. 9-2.5. Single political committee.

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

(b) A public official with one or more pre-existing committees bound by the limits of any subsection of Section 9-8.5 considering a candidacy for any office covered by the limits of any different subsection of Section 9-8.5 must form a new committee, to be termed an exploratory committee. A pre-existing committee created for the primary purpose of aiding that candidate's election to other offices that ceases all fundraising after the creation of an exploratory committee may transfer funds without limit to an exploratory committee. If the candidate decides against running for the new office, fails to qualify for the ballot at the next election, or loses the next election, but remains in the office for which the pre-existing committee was designated, the pre-existing committee may be continued to be used as the designated committee for that candidate. If the candidate decides against running for the new office, fails to qualify for the ballot at the next election, or loses the next election, then the exploratory committee must return any remaining funds to contributors, including returning funds to the candidate's pre-existing designated committee in an amount not to exceed the amount the pre-existing committee transferred to the exploratory committee, or donate the funds to charity, and close the exploratory committee within 90 days following the candidate's decision not to run, failure to qualify, or loss.

(c) As described in 5/9-2.7(c), the President of the Senate, Minority Leader of the Senate, Speaker of the House of Representatives, and Minority Leader of the House of Representatives may each establish and operate one additional political committee for the purpose of supporting the election of candidates to the General Assembly. The committees provided for in this subsection (c) shall not be considered established by the President of the Senate, Minority Leader of the Senate, Speaker of the House of Representatives, or Minority Leader of the House of Representatives for purposes of Section 9-2.5.

(10 ILCS 5/9-2.7 new)

Sec. 9-2.7. Designated Political Committees.

(a) Candidate committees.

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

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

(b) Party committees.

(1) Any political organization or party may designate in writing one and only one political committee to support candidates of a specific political party seeking elective office within a specific jurisdiction. The designation shall be made no later than 15 business days after the effective date of this amendatory Act of the 96th General Assembly, or 15 business days after formation of the committee, and shall be filed with the State Board of Election. The designation of a party committee may be changed only upon the replacement of the party chairman.

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

(c) Caucus committees.

(1) The President of the Senate, Minority Leader of the Senate, Speaker of the House of Representatives, and Minority Leader of the House of Representatives may each designate in writing one and only one political committee to serve as the political committee of his or her caucus. The designation shall be made no later than 15 business days after the start of the General Assembly, and shall be filed with the State Board of Election. The designation of a caucus committee may not be changed, revoked, or altered until the start of the next General Assembly unless the person elected to the office authorized to designate the caucus committee also changes; the new leader may designate a new committee within 15 business days after taking office.

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

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

(10 ILCS 5/9-8.5 new)

Sec. 9-8.5. Limitation on contributions.

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

(b) To political committees designated by a candidate for the General Assembly:

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

(2) Political committees established by a State political party may contribute no more than $30,000 during the regular election period. All committees established by a State political party, under State or federal law, shall be considered as one committee for the purpose of this Section.

(3) Political committees established by a partisan legislative caucus may contribute no more than $30,000 during any regular election period.

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

(5) A corporation, labor organization, or association may contribute from its own treasuries no more than $5,000 during a regular election period. All contributions from affiliated persons and affiliated entities shall be aggregated for the purposes of this Section.

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

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

(2) The candidate may designate one and only one political party whose political committees may contribute no more than $10,000 during the regular election period. All committees established by the political party, under State or federal law, shall be considered as one committee for the purpose of this Section.

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

(3.5) A corporation, labor organization, or association may contribute from its own treasuries no more than $5,000 during any regular election period. All contributions from affiliated persons and affiliated entities shall be aggregated for the purposes of this Section.

(d) To political committees designated by a candidate for judicial office:

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

(2) The candidate may designate one and only one political party whose political committees may contribute no more than $10,000 during the regular election period. All committees established by the political party, under State or federal law, shall be considered as one committee for the purpose of this Section.

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

(4) A corporation, labor organization, or association may contribute from its own treasuries no more than $5,000 during a regular election period. All contributions from affiliated persons and affiliated entities shall be aggregated for the purposes of this Section.

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

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

(2) The candidate may designate one and only one political party whose political committees may contribute no more than $50,000 during the regular election period. All committees established by the political party, under State or federal law, shall be considered as one committee for the purpose of this Section.

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

(4) A corporation, labor organization, or association may contribute from its own treasuries no more than $5,000 during a regular election period. All contributions from affiliated persons and affiliated entities shall be aggregated for the purposes of this Section.

(f) To political committees designated by an established political party:

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

(2) Any other political committee may contribute no more than $5,000 during any regular election period.

(3) A corporation, labor organization, or association may contribute from its own treasuries no more than $5,000 during a regular election period. All contributions from affiliated persons and affiliated entities, shall be aggregated for the purposes of this Section.

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

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

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

(3) A corporation, labor organization, or association may contribute from its own treasuries no more than $5,000 during any regular election period. All contributions from affiliated persons and affiliated entities shall be aggregated for the purposes of this Section.

(h) For any other political committee, natural persons may contribute no more than $2,400 during any period beginning on January 1 of an odd-numbered year and ending on December 31 of an even-numbered year. A corporation, labor organization, association, or other political committee may contribute no more than $5,000 during a regular election period described in subsection (a) of Section 9-1.16. All contributions from affiliated persons and affiliated entities shall be aggregated for the purposes of this Section.

(i) Political committees may divide the proceeds of joint fundraising efforts but must disclose all donations as from their true origin, and no political committee may receive more then the aggregate limit from any one donor.

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

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

(l) Expenditures.

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

(2) The financing by any person of the dissemination, distribution, or republication, in whole or in part, of any broadcast or any written, graphic, or other form of campaign materials prepared by the candidate, his or her political committee, State party committee, legislative caucus committee, or their authorized agents shall be considered to be a contribution to the candidate's designated political committee for the purposes of this Section if the amount spent exceeds $150 in any regular election period.

(m) No candidate or political committee shall knowingly accept any contribution in violation of the provisions of this Section.

(n) Multiple designations.

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

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

(o) The Board shall bring complaints and investigations on its own initiative when the Board has reason to believe that a person, candidate, or political committee has knowingly violated this Section.

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

(p) Penalties.

(1) Any person, corporation, labor organization, association, or political committee, that knowingly violates this Section of contributing more than amounts allowed under this Section 9-8.5, shall be fined the greater of $5,000 or 3 times the value of the unlawful contribution.

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

(10 ILCS 5/9-8.6 new)

Sec. 9-8.6. Disclosure of independent expenditures.

(a) As used in this Article:

"Benefiting public official or candidate" means the public official or candidate whose nomination or election or whose opponent's defeat is expressly advocated by the person making the independent expenditure.

"Independent expenditure" means an expenditure (i) that is made by a person expressly advocating the nomination, election, or defeat of a clearly identifiable public official or candidate and (ii) that is not made in connection, consultation, or concert with or at the request or suggestion of the public official or candidate, the public official's or candidate's designated political committee, or the agent or agents of the public official, candidate, or political committee.

(b) A person that makes an independent expenditure with respect to a benefiting public official or candidate that, alone or in combination with any other independent expenditure made by that person with respect to that benefiting public official or candidate during the same regular election period, equals an aggregate value of at least $5,000 must file a written disclosure with the benefiting public official or candidate and the State Board of Elections within 5 business days after making each expenditure that results in the person meeting or exceeding the $5,000 threshold. Each disclosure must identify the person, his or her occupation and employer, the benefiting public official or candidate, and the date, amount, recipient, and nature of each independent expenditure.

(c) Penalties.

(1) Any person, corporation, labor organization, association, or political committee, that knowingly violates this Section by contributing more than amounts allowed under this Section 9-8.6, shall be fined the greater of $5,000 or 3 times the value of the unlawful contribution.

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

(10 ILCS 5/9-8.7 new)

Sec. 9-8.7. Disclosure by contribution coordinator.

(a) As used in this Section:

"Contribution bundle" means one or more contributions (i) made by at least one contributor other than the contribution coordinator and (ii) with an aggregate value of at least $16,000 during any regular election period (this amount to be indexed for inflation).

"Contribution coordinator" means a person, other than a political committee subject to the reporting requirements of Section 9-10, or an employee of the political committee that: (i) physically or electronically forwards contributions from one or more other persons to a political committee; (ii) is credited by a candidate, public official, or political committee, through records, designations, or other means of recognition, with raising contributions made by one or more other persons to that candidate, public official, or political committee; or (iii) a candidate, public official, or political committee knows, or reasonably should know, has raised contributions made by one or more other persons to the candidate, public official, or political committee. "Contribution coordinator" shall not mean any common carrier, bank, other regulated financial institution, money transmitter, or other person that transmits the contribution in physical or electronic form in the ordinary course of its business of transporting or transferring money or other property.

(b) Contribution coordinators must include a written disclosure identifying their name, occupation, and employer with each contribution they forward physically or electronically to a political committee.

(c) The political committee must disclose the name, occupation, and employer of the individual contributor, the date and amount of the individual contribution, and the contribution coordinator's name, occupation, and employer for every contribution bundle received during any regular election period.

(d) The political committee that receives a contribution bundle must electronically file the disclosure under subsection (c) with the State Board of Elections within 5 business days after the candidate, public official, or political committee receives the contribution that causes the aggregate amount of contributions raised through the contribution coordinator's efforts to exceed $16,000 (as indexed for inflation) and become a contribution bundle.

(e) For the purpose of the contribution limits established by this Article, each contribution in a contribution bundle is attributed to the person that made the contribution to the contribution coordinator and is not attributed to the contribution coordinator unless the contribution coordinator personally made that contribution.

(f) A political committee that accepts a contribution in violation of this Section shall return the contribution to the contribution coordinator, or donate the contribution to a charitable organization approved by the State Board of elections, within 10 business days after receipt. A contribution accepted in violation of this Section and not disposed of as provided in this subsection shall escheat to the General Revenue Fund.

(g) Penalties.

(1) Any person, corporation, labor organization, association, or political committee, that knowingly violates this Section by contributing more than amounts allowed under this Section 9-8.7, shall be fined the greater of $5,000 or 3 times the value of the unlawful contribution.

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

(10 ILCS 5/9-8.9 new)

Sec. 9-8.9. Certain contributions prohibited.

(a) For the purpose of this Section, "State employee" and "executive branch constitutional officer" are defined as in the State Officials and Employees Ethics Act.

(b) A State employee of the executive branch of State government may not make a contribution to (i) the executive branch constitutional officer with authority to appoint the Executive Inspector General with jurisdiction over that State employee, (ii) a candidate for that executive branch constitutional office, or (iii) a political committee established to promote the candidacy of a person described in (i) or (ii). A State employee of the legislative branch of State government may not make a contribution to a member of the General Assembly, a General Assembly candidate, or the designated political committees established to promote the candidacy of a General Assembly member or General Assembly candidate, the designated State party committee, or the designated legislative caucus committees.

(c) A person that engages in an activity (i) subject to regulation by the Illinois Commerce Commission or the Division of Insurance or Division of Financial Institutions of the Department of Financial and Professional Regulation or (ii) subject to the Illinois Horse Racing Act of 1975 or the Riverboat Gambling Act, and that person's affiliated persons and affiliated entities, may not make a contribution to an executive branch constitutional officer, a General Assembly member, a candidate for an executive branch constitutional office or the General Assembly, or a designated political committee established to promote the candidacy of that officer, member, or candidate, the designated State party committee, or the designated legislative caucus committees.

(d) A person required to register under the Lobbyist Registration Act may not make a contribution to a public official, candidate, political committee, or other person.

(e) A trust may not make a contribution to a public official, candidate, political committee, or other person.

(f) A candidate, public official, or political committee that accepts a contribution made in violation of this Section shall return the contribution to the contributor, or donate the contribution to a charitable organization approved by the State Board of Elections, within 10 business days after receipt. A contribution made in violation of this Section and not disposed of as provided in this subsection shall escheat to the State treasury.

(g) Penalties.

(1) Any person, corporation, labor organization, association, or political committee, that knowingly violates this Section by contributing more than amounts allowed under this Section 9-8.9, shall be fined the greater of $5,000 or 3 times the value of the unlawful contribution.

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

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

Sec. 9-10. Financial reports.

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

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

(b-5) Notwithstanding the provisions of subsection (b) and Section 1.25 of the Statute on Statutes, any contribution of more than $500 received (i) with respect to elections other than the general primary election, in the interim between the last date of the period covered by the last report filed under subsection (b) prior to the election and the date of the election or (ii) with respect to general primary elections, in the period beginning January 1 of the year of the general primary election and prior to the date of the general primary election shall be filed electronically with and must actually be received by the State Board of Elections within 2 business days after receipt of such contribution. A report of any contribution received at any other time in the amount of more than $500, or more than $1,000 in the case of a State officer or a candidate for statewide office or political committee formed for a State officer or candidate for statewide office, in the interim between the last date of the period covered by the last report filed under subsections (b) and (c) shall be filed electronically with and must actually be received by the State Board of Elections within 5 business days after receipt of the contribution. For the purpose of this subsection, "statewide office" and "State officer" means the Governor, Lieutenant Governor, Attorney General, Secretary of State, Comptroller, and Treasurer. A continuing political committee that does not support or oppose a candidate or public question on the ballot at a general primary election and does not make expenditures in excess of $500 on behalf of or in opposition to any candidate or public question on the ballot at the general primary election shall not be required to file the report prescribed in this subsection unless the committee makes an expenditure in excess of $500 on behalf of or in opposition to any candidate or public question on the ballot at the general primary election. The committee shall timely file the report required under this subsection beginning with the date the expenditure that triggered participation was made. The State Board shall allow filings of reports of contributions of more than $500 under this subsection (b-5) by political committees that are not required to file electronically to be made by facsimile transmission. For the purpose of this subsection, a contribution is considered received on the date the public official, candidate, or political committee (or equivalent person in the case of a reporting entity other than a political committee) actually receives it or, in the case of goods or services, 2 business days after the date the public official, candidate, committee, or other reporting entity receives the certification required under subsection (b) of Section 9-6. Failure to report each contribution is a separate violation of this subsection. In the final disposition of any matter by the Board on or after the effective date of this amendatory Act of the 93rd General Assembly, the Board may impose fines for violations of this subsection not to exceed 100% of the total amount of the contributions that were untimely reported, but in no case when a fine is imposed shall it be less than 10% of the total amount of the contributions that were untimely reported. When considering the amount of the fine to be imposed, the Board shall consider, but is not limited to, the following factors:

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

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

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

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

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

(d) A copy of each report or statement filed under this Article shall be preserved by the person filing it for a period of two years from the date of filing. Within 5 business days after the Board imposes or waives fines under this Section, the Board shall publish on its website a summary of fines considered and imposed, identifying the person, candidate, or political committee subject to the determination, the total amount of contributions that were untimely reported, and the amount of penalties assessed in each instance.

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

(10 ILCS 5/9-18) (from Ch. 46, par. 9-18)

Sec. 9-18. The Board shall may hold investigations, inquiries, and hearings concerning any matter covered by this Article in which the Board has reason to believe this Article has been knowingly violated, subject to such rules and regulations as the Board may establish. In the process of holding such investigations, inquiries, and hearings, the Board may administer oaths and affirmations, certify to all official acts, issue subpoenas to be authorized by a vote of 5 members of the Board, compel the attendance and testimony of witnesses, and the production of papers, books, accounts, and documents. Hearings conducted by the Board shall be open to the public.

(Source: P.A. 81-1117.)

(10 ILCS 5/9-21) (from Ch. 46, par. 9-21)

Sec. 9-21. Upon receipt of a such complaint as provided in Section 9-20, the Board shall hold a public closed preliminary hearing to determine whether or not the complaint appears to have been filed on justifiable grounds. Such closed preliminary hearing shall be conducted as soon as practicable after affording reasonable notice, a copy of the complaint, and an opportunity to testify at such hearing to both the person making the complaint and the person against whom the complaint is directed. If the Board fails to determine that the complaint has been filed on justifiable grounds, it shall dismiss the complaint without further hearing.

Whenever in the judgment of the Board in an open meeting determines, after affording due notice and an opportunity for a public hearing, any person has engaged or is about to engage in an act or practice which constitutes or will constitute a violation of any provision of this Article or any regulation or order issued thereunder, the Board shall issue an order directing such person to take such action as the Board determines may be necessary in the public interest to correct the violation. In addition, if the act or practice engaged in consists of the failure to file any required report within the time prescribed by this Article, the Board, as part of its order, shall further provide that if, within the 12-month period following the issuance of the order, such person fails to file within the time prescribed by this Article any subsequent report as may be required, such person may be subject to a civil penalty pursuant to Section 9-23. The Board shall render its final judgment within 60 days of the date the complaint is filed; except that during the 60 days preceding the date of the election in reference to which the complaint is filed, the Board shall render its final judgment within 7 days of the date the complaint is filed, and during the 7 days preceding such election, the Board shall render such judgment before the date of such election, if possible.

At any time prior to the issuance of the Board's final judgment, the parties may dispose of the complaint by a written stipulation, agreed settlement or consent order. Any such stipulation, settlement or order shall, however, be submitted in writing to the Board and shall become effective only if approved by the Board in an open meeting. If the act or practice complained of consists of the failure to file any required report within the time prescribed by this Article, such stipulation, settlement or order may provide that if, within the 12-month period following the approval of such stipulation, agreement or order, the person complained of fails to file within the time prescribed by this Article any subsequent reports as shall may be required, such person may be subject to a civil penalty pursuant to Section 9-23.

Any person filing a complaint pursuant to Section 9-20 may, upon written notice to the other parties and to the Board, voluntarily withdraw the complaint at any time prior to the issuance of the Board's final determination.

(Source: P.A. 93-574, eff. 8-21-03.)

(10 ILCS 5/9-23) (from Ch. 46, par. 9-23)

Sec. 9-23. Whenever the Board, pursuant to Section 9-21, has issued an order, or has approved a written stipulation, agreed settlement or consent order, directing a person determined by the Board to be in violation of any provision of this Article or any regulation adopted thereunder, to cease or correct such violation or otherwise comply with this Article and such person fails or refuses to comply with such order, stipulation, settlement or consent order within the time specified by the Board, the Board in an open meeting, after affording notice and an opportunity for a public hearing, may impose a civil penalty on such person in an amount not to exceed $5,000; except that for State officers and candidates and political committees formed for statewide office, the civil penalty may not exceed $10,000. For the purpose of this Section, "statewide office" and "State officer" means the Governor, Lieutenant Governor, Attorney General, Secretary of State, Comptroller, and Treasurer.

Civil penalties imposed on any such person by the Board shall be enforceable in the Circuit Court. The Board shall petition the Court for an order to enforce collection of the penalty and, if the Court finds it has jurisdiction over the person against whom the penalty was imposed, the Court shall issue the appropriate order. Any civil penalties collected by the Court shall be forwarded to the State Treasurer.

In addition to or in lieu of the imposition of a civil penalty, the board may report such violation and the failure or refusal to comply with the order of the Board to the Attorney General and the appropriate State's Attorney.

(Source: P.A. 93-615, eff. 11-19-03.)

(10 ILCS 5/9-23.5 new)

Sec. 9-23.5. Public database of complaints. The State Board of Elections shall establish and maintain on its official website a searchable database, freely accessible to the public, of each complaint filed with the Board under this Article and the disposition of that complaint, including all board actions and penalties imposed, if any. The Board must update the database within 5 business days after a complaint is filed, an action taken, or a penalty imposed to include that complaint, action, or penalty in the database.

(10 ILCS 5/9-28)

Sec. 9-28. Electronic filing and availability. The Board shall by rule provide for the electronic filing of expenditure and contribution reports as follows:

Beginning July 1, 1999, or as soon thereafter as the Board has provided adequate software to the political committee, electronic filing is required for all political committees that during the reporting period (i) had at any time a balance or an accumulation of contributions of $25,000 or more, (ii) made aggregate expenditures of $25,000 or more, or (iii) received loans of an aggregate of $25,000 or more.

Beginning July 1, 2003, electronic filing is required for all political committees that during the reporting period (i) had at any time a balance or an accumulation of contributions of $10,000 or more, (ii) made aggregate expenditures of $10,000 or more, or (iii) received loans of an aggregate of $10,000 or more.

Notwithstanding any other provision of this Section, a political committee filing a report under subsection (b-5) of Section 9-10 must file that report electronically.

The Board may provide by rule for the optional electronic filing of expenditure and contribution reports for all other political committees. The Board shall promptly make all reports filed under this Article by all political committees publicly available by means of a searchable database that is accessible through the World Wide Web.

The Board shall provide all software necessary to comply with this Section to candidates, public officials, political committees, and election authorities.

The Board shall implement a plan to provide computer access and assistance to candidates, public officials, political committees, and election authorities with respect to electronic filings required under this Article.

For the purposes of this Section, "political committees" includes entities required to report to the Board under Section 9-7.5.

(Source: P.A. 90-495, eff. 8-18-97; 90-737, eff. 1-1-99.)

Section 10. The Illinois Procurement Code is amended by changing Section 50-37 as follows:

(30 ILCS 500/50-37)

Sec. 50-37. Prohibition of political contributions.

(a) As used in this Section:

The terms "contract", "State contract", and "contract with a State agency" each mean any contract, as defined in this Code, between a business entity and a State agency let or awarded pursuant to this Code. The terms "contract", "State contract", and "contract with a State agency" do not include cost reimbursement contracts; purchase of care agreements as defined in Section 1-15.68 of this Code; contracts for projects eligible for full or partial federal-aid funding reimbursements authorized by the Federal Highway Administration; grants, including but are not limited to grants for job training or transportation; and grants, loans, or tax credit agreements for economic development purposes.

"Contribution" means a contribution as defined in Section 9-1.4 of the Election Code.

"Declared candidate" means a person who has filed a statement of candidacy and petition for nomination or election in the principal office of the State Board of Elections.

"State agency" means and includes all boards, commissions, agencies, institutions, authorities, and bodies politic and corporate of the State, created by or in accordance with the Illinois Constitution or State statute, of the executive or legislative branch of State government and does include colleges, universities, public employee retirement systems, and institutions under the jurisdiction of the governing boards of the University of Illinois, Southern Illinois University, Illinois State University, Eastern Illinois University, Northern Illinois University, Western Illinois University, Chicago State University, Governors State University, Northeastern Illinois University, and the Illinois Board of Higher Education.

"Officeholder" means the Governor, Lieutenant Governor, Attorney General, Secretary of State, Comptroller, or Treasurer or a member of the General Assembly. The Governor shall be considered the officeholder responsible for awarding all contracts by all officers and employees of, and vendors and others doing business with, executive branch State agencies under the jurisdiction of the Executive Ethics Commission and not within the jurisdiction of the Attorney General, the Secretary of State, the Comptroller, or the Treasurer.

"Sponsoring entity" means a sponsoring entity as defined in Section 9-3 of the Election Code.

"Affiliated person" means (i) any person with any ownership interest or distributive share of the bidding or contracting business entity in excess of 7.5%, (ii) executive employees of the bidding or contracting business entity, and (iii) the spouse and minor children of any such persons.

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

"Business entity" means any entity doing business for profit, whether organized as a corporation, partnership, sole proprietorship, limited liability company or partnership, or otherwise.

"Executive employee" means the President, Chairman, Chief Executive Officer, or other employee with executive decision-making authority over the long-term and day-to-day affairs of the entity employing the employee, or an employee whose compensation is determined directly, in whole or in part, by the award or payment of contracts by a State agency to the entity employing the employee.

(b) Any business entity whose contracts with State agencies, in the aggregate, annually total more than $50,000, and any affiliated entities or affiliated persons of such business entity, are prohibited from making any contributions to any political committees established to promote the candidacy of (i) the officeholder responsible for awarding the contracts, or (ii) any other declared candidate for that office, (iii) any State or statewide officer or candidate for that office, and (iv) any legislative member of the General Assembly. This prohibition shall be effective for the duration of the term of office of the incumbent officeholder awarding the contracts or for a period of 2 years following the expiration or termination of the contracts, whichever is longer.

(c) Any business entity whose aggregate pending bids and proposals on State contracts total more than $50,000, or whose aggregate pending bids and proposals on State contracts combined with the business entity's aggregate annual total value of State contracts exceed $50,000, and any affiliated entities or affiliated persons of such business entity, are prohibited from making any contributions to any political committee established to promote the candidacy of the officeholder responsible for awarding the contract on which the business entity has submitted a bid or proposal, any constitutional officer, or any legislative member of the General Assembly, during the period beginning on the date the invitation for bids or request for proposals is issued and ending on the day after the date the contract is awarded.

(d) All contracts between State agencies and a business entity that violate subsection (b) or (c) shall be voidable under Section 50-60. If a business entity violates subsection (b) 3 or more times within a 36-month period, then all contracts between State agencies and that business entity shall be void, and that business entity shall not bid or respond to any invitation to bid or request for proposals from any State agency or otherwise enter into any contract with any State agency for 3 years from the date of the last violation. A notice of each violation and the penalty imposed shall be published in both the Procurement Bulletin and the Illinois Register.

(e) Any political committee that has received a contribution in violation of subsection (b) or (c) shall pay an amount equal to the value of the contribution to the State no more than 30 days after notice of the violation concerning the contribution appears in the Illinois Register. Payments received by the State pursuant to this subsection shall be deposited into the general revenue fund.

(Source: P.A. 95-971, eff. 1-1-09; 95-1038, eff. 3-11-09.)

Section 97. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.

Section 99. Effective date. This Act takes effect on June 15, 2009, but the State Board of Elections shall have 120 days to implement new electronic reporting requirements and any needed regulations.