HB3804 103RD GENERAL ASSEMBLY

LRB103 29670 BMS 56072 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3804

Introduced 2/17/2023, by Rep. Maurice A. West, II

SYNOPSIS AS INTRODUCED:

10 ILCS 5/9-1	from Ch. 46, par. 9-1
10 ILCS 5/9-1.4	from Ch. 46, par. 9-1.4
10 ILCS 5/9-1.5	from Ch. 46, par. 9-1.5
10 ILCS 5/9-1.8	from Ch. 46, par. 9-1.8
10 ILCS 5/9-1.14
10 ILCS 5/9-1.15
10 ILCS 5/9-1.16 new
10 ILCS 5/9-1.17 new
10 ILCS 5/9-3	from Ch. 46, par. 9-3
10 ILCS 5/9-3.6 new
10 ILCS 5/9-3.10 new
10 ILCS 5/9-10	from Ch. 46, par. 9-10
10 ILCS 5/9-10.5 new
10 ILCS 5/9-22	from Ch. 46, par. 9-22
10 ILCS 5/9-28.5
10 ILCS 5/9.50 new
10 ILCS 5/9-8.6 rep.

Amends the Election Code. Sets forth provisions concerning independent expenditures; coordinated expenditures; transfer records for independent expenditures; reporting requirements for independent expenditures; disclosure of original contributors on independent expenditures for public communications; judicial review of actions of the State Board of Elections; and a prohibition on structured contributions. Replaces references to "electioneering communication" with "election spending". Defines terms. Makes other changes.

A BILL FOR

AN ACT concerning regulation.

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 Sections 9-1, 9-1.4, 9-1.5, 9-1.8, 9-1.14, 9-1.15, 9-3, 9-10, 9-22, and 9-28.5 and by adding Sections 9-1.16, 9-1.17, 9-3.6, 9-3.10, 9-10.5, and 9.50 as follows:

(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 9-1.17 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.

(A) "Contribution" means:

(1) a gift, subscription, donation, dues, loan, advance, deposit of money, or anything of value, knowingly received in connection with the nomination for election, election, or retention of any candidate or person to or in public office 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 election spending an electioneering communication made in concert or cooperation with or at the request, suggestion, or knowledge of a candidate, a political committee, 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, election, or retention of any person in or to public office, or in connection with any question of public policy;

(3) a transfer of funds received by a political committee from another political committee;

(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; and

(5) an expenditure by a political committee made in cooperation, consultation, or concert with another political committee.

(A-5) "In-kind contribution" means anything of value, other than a direct contribution of funds, knowingly received in connection with the nomination for election, election, or retention of any candidate or person to or in public office or in connection with any question of public policy, including:

(1) goods or services provided free of charge or at less than their market value; and

(2) anything of value that constitutes election spending made in concert or cooperation with or at the request, suggestion, or knowledge of a candidate, a political committee, or any of their agents.

(B) "Contribution" 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;

(c) communications by a corporation to its stockholders and executive or administrative personnel or their families;

(d) communications by an association to its members and executive or administrative personnel or their families;

(e) voter registration or other campaigns encouraging voting that make no mention of any clearly identified candidate, public question, political party, group, or combination thereof;

(f) a loan of money by a national or State bank or credit union made in accordance with the applicable banking laws and regulations and in the ordinary course of business, but the loan shall be listed on disclosure reports required by this Article; however, the use, ownership, or control of any security for such a loan, if provided by a person other than the candidate or his or her committee, qualifies as a contribution; or

(g) an independent expenditure.

(C) Interest or other investment income, earnings or proceeds, and refunds or returns of all or part of a committee's previous expenditures shall not be considered contributions but shall be listed on disclosure reports required by this Article.

(Source: P.A. 96-832, eff. 1-1-11.)

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

Sec. 9-1.5. Expenditure.

(A) "Expenditure" means:

(1) a payment, distribution, purchase, loan, advance, deposit, gift of money, or anything of value, in connection with the nomination for election, election, or retention of any person to or in public office or in connection with any question of public policy;

(2) a payment, distribution, purchase, loan, advance, deposit, gift of money, or anything of value that constitutes election spending an electioneering communication made in concert or cooperation with or at the request, suggestion, or knowledge of a candidate, a political committee, or any of their agents; or

(3) a transfer of funds by a political committee to another political committee.

(B) "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; or

(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. 96-832, eff. 1-1-11.)

(10 ILCS 5/9-1.8) (from Ch. 46, par. 9-1.8)

Sec. 9-1.8. Political committees.

(a) "Political committee" includes a candidate political committee, a political party committee, a political action committee, a ballot initiative committee, and an independent expenditure committee.

(b) "Candidate political committee" means the candidate himself or herself or any natural person, trust, partnership, corporation, or other organization or group of persons designated by the candidate that accepts contributions or makes expenditures during any 12-month period in an aggregate amount exceeding $5,000 on behalf of the candidate.

(c) "Political party committee" means the State central committee of a political party, a county central committee of a political party, a legislative caucus committee, or a committee formed by a ward or township committeeperson of a political party. For purposes of this Article, a "legislative caucus committee" means a committee established for the purpose of electing candidates to the General Assembly by the person elected President of the Senate, Minority Leader of the Senate, Speaker of the House of Representatives, Minority Leader of the House of Representatives, or a committee established by 5 or more members of the same caucus of the Senate or 10 or more members of the same caucus of the House of Representatives.

(d) "Political action committee" means any natural person, trust, partnership, committee, association, corporation, or other organization or group of persons, other than a candidate, political party, candidate political committee, or political party committee, that accepts contributions or makes expenditures during any 12-month period in an aggregate amount exceeding $5,000 on behalf of or in opposition to a candidate or candidates for public office. "Political action committee" includes any natural person, trust, partnership, committee, association, corporation, or other organization or group of persons, other than a candidate, political party, candidate political committee, or political party committee, that engages in election spending makes electioneering communications during any 12-month period in an aggregate amount exceeding $5,000 related to any candidate or candidates for public office.

(e) "Ballot initiative committee" means any natural person, trust, partnership, committee, association, corporation, or other organization or group of persons that accepts contributions or makes expenditures during any 12-month period in an aggregate amount exceeding $5,000 in support of or in opposition to any question of public policy to be submitted to the electors. "Ballot initiative committee" includes any natural person, trust, partnership, committee, association, corporation, or other organization or group of persons that engages in election spending makes electioneering communications during any 12-month period in an aggregate amount exceeding $5,000 related to any question of public policy to be submitted to the voters. The $5,000 threshold applies to any contributions or expenditures received or made with the purpose of securing a place on the ballot for, advocating the defeat or passage of, or engaging in election spending electioneering communication regarding the question of public policy, regardless of the method of initiation of the question of public policy and regardless of whether petitions have been circulated or filed with the appropriate office or whether the question has been adopted and certified by the governing body.

(f) "Independent expenditure committee" means any trust, partnership, committee, association, corporation, or other organization or group of persons that:

(1) makes independent expenditures during any 12-month period in an aggregate amount exceeding $5,000;

(2) has as one of its major purposes influencing the nomination or election of a candidate or candidates; and

(3) does not do any of the following:

(i) make contributions to any political committee other than a ballot initiative committee or another independent expenditure committee;

(ii) coordinate fundraising with any candidate or another political committee, other than a ballot initiative committee or another independent expenditure committee;

(iii) coordinate fundraising or spending with any group established, financed, maintained, or controlled by a candidate or another political committee, other than a ballot initiative committee or another independent expenditure committee;

(iv) employ the services of a person that during the previous 2 years had provided campaign services for a public official or candidate whom the trust, partnership, committee, association, corporation, or other organization or group supports, unless the person establishes an effective firewall as described in subsection (f) of Section 9-1.17.

In this subsection (f), "coordinate" means to make in cooperation, consultation, or concert with, or at the request or suggestion of, a candidate, a candidate's committee, or a political party committee. formed for the exclusive purpose of making independent expenditures during any 12-month period in an aggregate amount exceeding $5,000 in support of or in opposition to (i) the nomination for election, election, retention, or defeat of any public official or candidate or (ii) any question of public policy to be submitted to the electors. "Independent expenditure committee" also includes any trust, partnership, committee, association, corporation, or other organization or group of persons that makes electioneering communications that are not made in connection, consultation, or concert with or at the request or suggestion of a public official or candidate, a public official's or candidate's designated political committee or campaign, or an agent or agents of the public official, candidate, or political committee or campaign during any 12-month period in an aggregate amount exceeding $5,000 related to (i) the nomination for election, election, retention, or defeat of any public official or candidate or (ii) any question of public policy to be submitted to the voters.

(g) "Limited activity committee" means a political committee for which a person who is nominated to a position that is subject to confirmation by the Senate, including a member of the State Board of Elections, is either an officer or a candidate the committee has designated to support.

(Source: P.A. 102-664, eff. 1-1-22.)

(10 ILCS 5/9-1.14)

Sec. 9-1.14. Electioneering communication and public communication.

(a) "Electioneering communication" means, for the purposes of this Article, any broadcast, cable, or satellite communication, including radio, television, or Internet communication, that (1) refers to (i) a clearly identified candidate or candidates who will appear on the ballot for nomination for election, election, or retention, (ii) a clearly identified political party, or (iii) a clearly identified question of public policy that will appear on the ballot, (2) is made within (i) 60 days before a general election or consolidated election or (ii) 30 days before a primary election, (3) is targeted to the relevant electorate, and (4) is susceptible to no reasonable interpretation other than as an appeal to vote for or against a clearly identified candidate for nomination for election, election, or retention, a political party, or a question of public policy.

(b) "Electioneering communication" does not include:

(1) A communication, other than an advertisement, appearing in a news story, commentary, or editorial distributed through the facilities of any legitimate news organization, unless the facilities are owned or controlled by any political party, political committee, or candidate.

(2) A communication made solely to promote a nonpartisan candidate debate or forum that is made by or on behalf of the person sponsoring the debate or forum.

(3) A communication made as part of a nonpartisan non-partisan activity designed to encourage individuals to vote or to register to vote.

(4) A communication by an organization operating and remaining in good standing under Section 501(c)(3) of the Internal Revenue Code of 1986.

(5) A communication exclusively between a labor organization, as defined under federal or State law, and its members.

(6) A communication exclusively between an organization formed under Section 501(c)(6) of the Internal Revenue Code and its members.

(c) "Public communication" means, for the purposes of this Article, any broadcast, cable, satellite, radio, television, print, or Internet communication, or any other form of general public political advertising or marketing regardless of medium, including, but not limited to:

(1) advertising placed for a fee in a print publication or on a website, or other digital medium;

(2) outdoor advertising, such as billboards; or

(3) mass mailing, phone banking, or text banking delivering an identical or substantially similar message intended to contact 500 or more persons within a 30-day period.

(Source: P.A. 96-832, eff. 7-1-10.)

(10 ILCS 5/9-1.15)

Sec. 9-1.15. Independent expenditure.

(a) "Independent expenditure" means any payment, gift, donation, or expenditure of funds that:

(1) is made for election spending as defined in Section 9-1.16; and

(2) is not made in connection, consultation, or concert with or at the request or suggestion of a public official or candidate, the public official or candidate's political committee, or the agent or agents of the public official, candidate, or political committee or campaign.

(b) An independent expenditure is not considered a contribution to a political committee. An expenditure made by a person or political committee 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 political committee, or the agent or agents of the public official, candidate, or political committee or campaign shall be considered a contribution to the public official's or candidate's political committee.

(c) A person that is not a political committee and that makes an independent expenditure that, alone or in combination with any other independent expenditure made by that person during any 12-month period, equals an aggregate value of at least $5,000 must file a written disclosure with the State Board of Elections within 2 business days after making any expenditure that results in the person meeting or exceeding the $5,000 threshold. A person who has made a written disclosure with the State Board of Elections shall have a continuing obligation to report further expenditures, in $1,000 increments, to the State Board of Elections until the conclusion of the next general election.

(d) A person that makes an independent expenditure supporting or opposing a public official or candidate that, alone or in combination with any other independent expenditure made by that person supporting or opposing that public official or candidate during the election cycle, equals an aggregate value of more than (i) $250,000 for statewide office or (ii) $100,000 for all other elective offices must file a written disclosure with the State Board of Elections within 2 business days after making any expenditure that results in the person exceeding the applicable threshold. Each disclosure must identify the person, the public official or candidate supported or opposed, the date, amount, and nature of each independent expenditure, and the person's occupation and employer, if applicable.

(e) Every political committee that makes independent expenditures must report all such independent expenditures as required under Section 9-10.

(f) If a political committee organized as an independent expenditure committee makes a contribution to any other political committee other than another independent expenditure committee or a ballot initiative committee, the State Board of Elections shall assess a fine equal to the amount of any contribution received in the preceding 2 years by the independent expenditure committee that exceeded the limits for a political action committee set forth in subsection (d) of Section 9-8.5.

"Independent expenditure" means any payment, gift, donation, or expenditure of funds (i) by a natural person or political committee for the purpose of making electioneering communications or of expressly advocating for or against the nomination for election, election, retention, or defeat of a clearly identifiable public official or candidate or for or against any question of public policy to be submitted to the voters 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 campaign, or the agent or agents of the public official, candidate, or political committee or campaign.

(Source: P.A. 96-832, eff. 7-1-10; 97-766, eff. 7-6-12.)

(10 ILCS 5/9-1.16 new)

Sec. 9-1.16. Election spending. As used in this Article, "election spending" means any spending on:

(1) express advocacy for or against the nomination for election, election, retention, or defeat of a clearly identifiable public official or candidate or for or against any question of public policy to be submitted to the voters;

(2) an electioneering communication;

(3) a public communication that promotes, attacks, supports, or opposes a clearly identifiable public official or candidate or any question of public policy to be submitted to the voters;

(4) encouraging partisan voter activity, including partisan voter registration, partisan get-out-the-vote activity, or partisan generic campaign activity; or

(5) conducting research, design, production, polling, data analytics, mailing or social media list acquisition, or other activities conducted in preparation for or conjunction with activities in paragraphs (1), (2), (3), and (4).

(10 ILCS 5/9-1.17 new)

Sec. 9-1.17. Coordinated expenditures.

(a) As used in this Section, "coordinated expenditure" means:

(1) the republication of a candidate's or political party's campaign materials, unless such republication is used to oppose the candidate or party that created the materials; or

(2) an expenditure that meets at least one conduct standard and one content standard.

"Coordinated expenditure" does not include:

(1) a communication that appears in a news story, commentary, or editorial; or

(2) an expenditure for a nonpartisan candidate debate or forum.

For purposes of defining coordinated expenditures:

(1) "candidate" includes any person who is a candidate at the time of the expenditure, regardless of whether that person was a candidate at the time the conduct constituting coordination took place;

(2) an expenditure "not made totally independently" includes any expenditure made pursuant to any expressed or implied agreement with, or any general or particular understanding with, or pursuant to any request by or communication with, the candidate, committee, or political party about the expenditure; and

(3) references to candidates or parties include agents, executives, or managers who worked for such persons during the 2 years preceding the expenditure.

(b) Conduct constitutes coordination between a spender and the candidate or political party that benefits from the expenditure whenever:

(1) an expenditure is not made totally independently of a candidate or party;

(2) during the 2 years preceding the expenditure, the candidate, including immediate family members, or party directly or indirectly established, maintained, controlled, or principally funded the spender;

(3) during the 2 years preceding the expenditure, a candidate or party official solicited funds for the spender, provided fundraising information to the spender, appeared as a speaker at a fundraiser for the spender, or gave permission to be featured in the spender's fundraising efforts;

(4) the expenditure is based on information about the candidate's or party's campaign needs that the candidate or party provided to the spender; or

(5) during the 2 years preceding the expenditure, the spender employed the services of a person who, during the same period, had executive or managerial authority for the candidate or party, was authorized to raise or expend funds for the candidate or party, or provided the candidate or party with professional services other than accounting or legal services related to campaign or fundraising strategy.

(c) An expenditure, when coordinated, constitutes funds spent for the purpose of influencing an election whenever:

(1) regarding a candidate or a candidate's political committee, the expenditure is for:

(i) a public communication that expressly advocates for or against the nomination or election of a candidate; that supports a candidate's election or opposes a candidate's opponent; or refers to a clearly identified candidate at any time from 120 days before a primary election, nominating caucus or convention, or retention election through the general election;

(ii) an expenditure for partisan voter activity, including voter registration, get-out-the-vote activity, phone banking, or generic campaign activity, in the jurisdiction where the candidate is seeking election; or

(iii) an expenditure for research, design or production costs, polling expenses, data analytics, creating or purchasing mailing or social media lists, or other activities related to those defined in subdivisions (i) or (ii).

(2) regarding a political party, the expenditure is for:

(i) a public communication that expressly advocates for the election of a candidate of the political party or against a candidate of an opposing political party; that supports a candidate of the political party or opposes a candidate of an opposing political party, including generically advocating for the political party or against an opposing political party; or refers to a clearly identified candidate or political party at any time from 120 days before a primary election, nominating caucus or convention, or retention election through the general election;

(ii) an expenditure for partisan voter activity, including voter registration, get-out-the-vote activity, phone banking, or generic campaign activity; or

(iii) an expenditure for research, design or production costs, polling expenses, data analytics, creating or purchasing mailing or social media lists, or other activities related to those defined in subdivisions (i) or (ii).

(d) Notwithstanding paragraph (5) of subsection (b), expenditures involving former employees or common agents of a candidate or party will not be deemed coordinated if the spender implements, or causes another person to implement, an effective firewall. A person who relies upon a firewall bears the burden of proof of showing that the firewall was effective. A firewall must:

(1) separate staff who provide a service to the spender in relation to its covered expenditures from other staff who provide services to a candidate or party supported by the spender's expenditures;

(2) forbid an organization's owners, executives, managers, and supervisors from simultaneously overseeing the work of staff separated by a firewall;

(3) prohibit the flow of strategic nonpublic information between the spender and the candidate or party supported by the covered expenditure and between specific staff who are separated by the firewall;

(4) provide for physical and technological separation to ensure that strategic nonpublic information does not flow between the spender and the candidate or party and between the specific staff separated by the firewall; and

(5) be in written form and distributed to all relevant employees and consultants before any relevant work is performed regarding both the general firewall policy and any specific firewall created pursuant to the general firewall policy, and provided to the Board of Elections upon request.

(10 ILCS 5/9-3) (from Ch. 46, par. 9-3)

Sec. 9-3. Political committee statement of organization.

(a) Every political committee shall file with the State Board of Elections a statement of organization within 10 business days of the creation of such committee, except any political committee created within the 30 days before an election shall file a statement of organization within 2 business days in person, by facsimile transmission, or by electronic mail. Any change in information previously submitted in a statement of organization shall be reported, as required for the original statement of organization by this Section, within 10 days following that change. The Board shall impose a civil penalty of $50 per business day upon political committees for failing to file or late filing of a statement of organization. Such penalties shall not exceed $5,000, and shall not exceed $10,000 for statewide office political committees. There shall be no fine if the statement is mailed and postmarked at least 72 hours prior to the filing deadline.

In addition to the civil penalties authorized by this Section, the State Board of Elections or any other political committee may apply to the circuit court for a temporary restraining order or a preliminary or permanent injunction against the political committee to cease the expenditure of funds and to cease operations until the statement of organization is filed.

For the purpose of this Section, "statewide office" means the Governor, Lieutenant Governor, Secretary of State, Attorney General, State Treasurer, and State Comptroller.

(b) The statement of organization shall include:

(1) the name and address of the political committee and the designation required by Section 9-2;

(2) the scope, area of activity, party affiliation, and purposes of the political committee;

(3) the name, address, and position of each custodian of the committee's books and accounts;

(4) the name, address, and position of the committee's principal officers, including the chairman, treasurer, and officers and members of its finance committee, if any;

(5) the name and address of any sponsoring entity;

(6) a statement of what specific disposition of residual fund will be made in the event of the dissolution or termination of the committee;

(7) a listing of all banks or other financial institutions, safety deposit boxes, and any other repositories or custodians of funds used by the committee; and

(8) the amount of funds available for campaign expenditures as of the filing date of the committee's statement of organization.

For purposes of this Section, a "sponsoring entity" is (i) any person, organization, corporation, or association that contributes at least 33% of the total funding of the political committee or (ii) any person or other entity that is registered or is required to register under the Lobbyist Registration Act and contributes at least 33% of the total funding of the political committee.

(c) Each statement of organization required to be filed in accordance with this Section shall be verified, dated, and signed by either the treasurer of the political committee making the statement or the candidate on whose behalf the statement is made and shall contain substantially the following verification:

"VERIFICATION:

I declare that this statement of organization (including any accompanying schedules and statements) has been examined by me and, to the best of my knowledge and belief, is a true, correct, and complete statement of organization as required by Article 9 of the Election Code. I understand that willfully filing a false or incomplete statement is subject to a civil penalty of at least $1,001 and up to $5,000. ................ .......................................... (date of filing) (signature of person making the statement)".

(d) The statement of organization for a ballot initiative committee also shall include a verification signed by the chairperson of the committee that (i) the committee is formed for the purpose of supporting or opposing a question of public policy, (ii) all contributions received and expenditures made by of the committee will be used for the purpose described in the statement of organization, (iii) the committee may accept unlimited contributions from any source, provided that the ballot initiative committee does not make contributions or expenditures in support of or opposition to a candidate or candidates for nomination for election, election, or retention, and (iv) failure to abide by these requirements shall deem the committee in violation of this Article.

(d-5) The statement of organization for an independent expenditure committee also shall include a verification signed by the chairperson of the committee that (i) the committee is formed for the exclusive purpose of making independent expenditures, (ii) all contributions received and expenditures made by of the committee will be used for the purpose described in the statement of organization, (iii) the committee may accept unlimited contributions from any source, provided that the independent expenditure committee does not make contributions to any candidate political committee, political party committee, or political action committee, and (iv) failure to abide by these requirements shall deem the committee in violation of this Article.

(e) For purposes of implementing the changes made by this amendatory Act of the 96th General Assembly, every political committee in existence on the effective date of this amendatory Act of the 96th General Assembly shall file the statement required by this Section with the Board by December 31, 2010.

(Source: P.A. 99-522, eff. 6-30-16.)

(10 ILCS 5/9-3.6 new)

Sec. 9-3.6. Transfer records for independent expenditures.

(a) As used in this Article:

"Business income" means:

(1) funds received by a person in commercial transactions in the ordinary course of a person's regular trade, business, or investments; or

(2) membership or union dues to the extent that they do not exceed $5,000 from a person in a calendar year.

"Covered entity" means any person, including a natural person or political committee, who spends $10,000 or more in an election cycle on independent expenditures, or who accepts $10,000 or more in an election cycle of in-kind contributions to enable independent expenditures, but not including:

(1) individuals who spend only their own personal funds for independent expenditures;

(2) organizations that spend only their own business income for independent expenditures; and

(3) a political committee that receives no more than $12,000 in contributions from any one person in a calendar year.

"Identity" means:

(1) in the case of a natural person, the name, mailing address, occupation, and employer of such individual; and

(2) in the case of any other entity, the full name and address, federal tax status, and state of incorporation or partnership, if any, of such entity.

"Original funds" means business income or the personal funds of an individual.

"Personal funds" means:

(1) any asset of an individual that the individual has legal control over and rightful title to;

(2) income received by an individual, including:

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

(B) dividends and proceeds from the individual's personal investments; and

(C) bequests to the individual, including income from trusts established by bequests; and

(3) a portion of assets that are jointly owned by the individual and the individual's spouse equal to the individual'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, then the value of one-half of the property.

"Personal funds" does not include any asset or income received from any person for the purpose of influencing any election.

"Traceable funds" means funds that have been given to a covered entity and for which, pursuant to subsection (c), no donor has opted out of their use or transfer for independent expenditures, or funds used to finance in-kind contributions to a covered entity to enable independent expenditures.

"Transfer records" means a written record of the identity of the persons who directly or indirectly contributed or transferred original funds used for independent expenditures, the amounts of those contributions or transfers, and how such funds are disbursed.

(b) A covered entity that spends $10,000 or more on independent expenditures in the 12 months before an election, or who accepts $10,000 or more in an election cycle of in-kind contributions to enable independent expenditures, must maintain transfer records. For the purposes of this Article, the amount of a covered entity's expenditures includes independent expenditures made by entities established, financed, maintained, or controlled by that committee or its officers.

(c) Before a covered entity can use or transfer a donor's funds for independent expenditures, the donor must be notified in writing that the funds may be so used and must be given an opportunity to opt out of having the donation used or transferred for such spending. The notice under this subsection:

(1) shall inform donors that their contributions may be used for independent expenditures in Illinois and that information about donors may have to be reported to the State Board of Elections for disclosure to the public;

(2) shall inform donors that they can opt out of having their contributions used or transferred for independent expenditures in Illinois by so notifying the covered entity in writing within 21 days; and

(3) may be provided to the donor before or after the covered entity receives the contribution, but the contribution may not be used or transferred for independent expenditures until 21 days after the notice is provided or until the donor provides written consent, whichever is earlier.

(d) Any person who contributes $10,000 or more in aggregate in traceable funds in an election cycle to a covered entity must inform that entity, within 10 days after receiving a written request from the covered entity, of the identities of persons who directly or indirectly contributed $1,000 or more in original funds being transferred, the amounts of such persons' original funds being transferred, and any persons who have previously transferred the original funds. If more than one transfer has previously occurred, the contributor must disclose all such previous transfers and intermediaries. The contributor must maintain these records for at least 5 years and provide them, upon request, to the State Board of Elections.

(e) Any person who makes an in-kind contribution to a covered entity of $10,000 or more in an election cycle to enable independent expenditures must inform that person, at the time the in-kind contribution is made or promised to be made, of the identities of persons who directly or indirectly contributed or provided $1,000 or more in original funds used to finance the in-kind contribution, the amounts of such persons' original funds so used, and any persons who had previously transferred such original funds. If more than one transfer had previously occurred, the in-kind contributor must disclose all such previous transfers and intermediaries. The in-kind contributor must maintain these records for at least 5 years and provide them, upon request, to the State Board of Elections.

(10 ILCS 5/9-3.10 new)

Sec. 9-3.10. Additional reporting requirements for entities making independent expenditures.

(a) A covered entity as defined in Section 9-3.6 that is also a political committee registered with the State Board of Elections shall, in addition to the reporting requirements set forth elsewhere in this Article, include the following information on reports that it makes to the State Board of Elections:

(1) On the committee statement of organization:

(A) the identity of any affiliated person who maintains its own transfer records and that person's relationship to the covered entity; and

(B) the name, address, and position of the individual who is the custodian of the transfer records.

(2) On reports disclosing contributions, including regular quarterly reports and reports on contributions of $1,000 or more as required by subsection (c) of Section 9-10:

(A) each contributor of original funds who has contributed, directly or indirectly, more than $5,000 of traceable funds or in-kind contributions during the election cycle to the covered entity, and the date and amount of each of such contributor's contributions;

(B) the identity of persons who acted as intermediaries who transferred, in whole or in part, traceable funds from original sources to the covered entity, and the date, amount, and source, original and intermediate, of such transferred funds;

(C) the identity of each person who received from the covered entity disbursements aggregating to $1,000 or more of traceable funds during the election cycle and the date and purpose of each disbursement, including the full name and office sought of any candidate that was supported, opposed, or referenced in a public communication that was financed, in whole or in part, with the disbursement; and

(D) the identity of any person whose aggregate contributions of traceable funds to the covered entity constituted more than half of such funds of the covered entity at the start of the election cycle.

(b) A covered entity as defined in Section 9-3.6 that is not a political committee shall file the following reports with the State Board of Elections:

(1) Within 10 days of first disbursing $10,000 or more in aggregate during an election cycle on independent expenditures, or accepting $10,000 or more in aggregate during an election cycle of in-kind contributions to enable independent expenditures, the covered entity shall file an initial report that discloses:

(A) the identity of the person who owns or controls the traceable funds;

(B) the identity of any affiliated person who maintains its own transfer records and that person's relationship to the covered entity;

(C) the name, address, and position of the individual who is the custodian of the transfer records;

(D) the name, address, and position of at least one individual who can control, directly or indirectly, how the traceable funds are disbursed;

(E) the total amount of traceable funds owned or controlled by the covered entity on the date of the report;

(F) each contributor of original funds who has contributed, directly or indirectly, more than $5,000 of traceable funds or in-kind contributions during the election cycle to the covered entity, and the date and amount of each of such contributor's contributions;

(G) the identity of persons who acted as intermediaries who transferred, in whole or in part, traceable funds from original sources to the covered entity, and the date, amount, and source, original and intermediate, of such transferred funds;

(H) the identity of each person who received from the covered entity disbursements aggregating to $1,000 or more of traceable funds during the election cycle and the date and purpose of each disbursement, including the full name and office sought of any candidate that was supported, opposed, or referenced in a public communication that was financed, in whole or in part, with the disbursement; and

(I) the identity of any person whose aggregate contributions of traceable funds to the covered entity constituted more than half of such funds of the covered entity at the start of the election cycle.

(2) After its initial report and each time the covered entity disburses another $10,000 or more in aggregate during the election cycle on independent expenditures, or receives another $10,000 in aggregate during the election cycle of in-kind contributions to enable independent expenditures, the covered entity shall file an additional report within 10 days that shall disclose any information that has changed since it was previously reported pursuant to paragraph (1).

(3) When information has changed since it was previously reported pursuant to paragraph (1) of subsection (b) but has not yet been reported, such changed information shall be reported within 20 days, except the reporting person need not report such changes that occur more than 2 years after the most recent report pursuant to this Section was filed.

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

Sec. 9-10. Disclosure of contributions and expenditures.

(a) The treasurer of every political committee shall file with the Board reports of campaign contributions and expenditures as required by this Section on forms to be prescribed or approved by the Board.

(b) Every political committee shall file quarterly reports of campaign contributions, expenditures, and independent expenditures. The reports shall cover the period January 1 through March 31, April 1 through June 30, July 1 through September 30, and October 1 through December 31 of each year. A political committee shall file quarterly reports no later than the 15th day of the month following each period. 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. A report is considered timely filed if it is received by the Board no later than 11:59 p.m. on the deadline or postmarked no later than 3 days prior to the deadline.

(c) A political committee shall file a report of any contribution of $1,000 or more electronically with the Board within 5 business days after receipt of the contribution, except that the report shall be filed within 2 business days after receipt if (i) the contribution is received 30 or fewer days before the date of an election and (ii) the political committee supports or opposes a candidate or public question on the ballot at that election or makes expenditures in excess of $500 on behalf of or in opposition to a candidate, candidates, a public question, or public questions on the ballot at that election. The State Board shall allow filings of reports of contributions of $1,000 or more by political committees that are not required to file electronically to be made by facsimile transmission. It is not a violation of this subsection (c) and a political committee does not need to file a report of a contribution of $1,000 or more if the contribution is received and returned within the same period it is required to be disclosed on a quarterly report.

(d) For the purpose of this Section, a contribution is considered received on the date (i) a monetary contribution was deposited in a bank, financial institution, or other repository of funds for the committee, (ii) the date a committee receives notice a monetary contribution was deposited by an entity used to process financial transactions by credit card or other entity used for processing a monetary contribution that was deposited in a bank, financial institution, or other repository of funds for the committee, or (iii) the public official, candidate, or political committee receives the notification of contribution of goods or services as required under subsection (b) of Section 9-6.

(e) A political committee that makes independent expenditures of $1,000 or more shall file a report electronically with the Board within 5 business days after making the independent expenditure, except that the report shall be filed within 2 business days after making the independent expenditure during the 60-day period before an election.

(e-5) An independent expenditure committee that makes an independent expenditure supporting or opposing a public official or candidate that, alone or in combination with any other independent expenditure made by that independent expenditure committee supporting or opposing that public official or candidate during the election cycle, equals an aggregate value of more than (i) $250,000 for statewide office or (ii) $100,000 for all other elective offices must file a written disclosure with the State Board of Elections within 2 business days after making any expenditure that results in the independent expenditure committee exceeding the applicable threshold.

(f) 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.

(g) The Board may assess a civil penalty against a committee or covered entity for any violation of this Section, Section 9-3.6, Section 9-3.10, or Section 9-10.5. The Board shall provide notice of any violation no later than 5 years 365 days after the date of the violation and provide the committee or covered entity with an opportunity to appeal a violation. A committee shall not be fined if notice is not provided as required by this subsection. The fine assessed by the Board for a violation of this Section shall not be less than the amount contributed or undisclosed, and not more than the greater of double that amount or $10,000 exceed the amount of the contribution and may be no more than $500 for the first violation, no more than $1,000 for the second violation, no more than $2,000 for a third violation, and no more than $3,000 for any subsequent violations. When determining the amount of the fine whether to waive or reduce a fine, the Board shall consider: (1) whether the political committee or covered entity made an attempt to disclose the contribution and any attempts made to correct the violation; (2) whether the violation was inadvertent, knowingly, or intentional; (3) whether the violation is attributed to a clerical or computer error; (4) the amount of the contribution or total contributions in the report; (5) whether the violation arose from a discrepancy between the date the contribution was reported and the date the contribution was received by a political committee or covered entity; (6) the number of days the report was submitted late; and (7) any prior violations.

(Source: P.A. 102-668, eff. 11-15-21.)

(10 ILCS 5/9-10.5 new)

Sec. 9-10.5. Disclosure of original contributors on independent expenditures for public communications.

(a) Independent expenditures for public communications financed by covered entities as defined in Section 9-3.6, including in-kind contributions of such communications accepted by covered entities, must include the following information:

(1) Any public communication that has a visual component shall clearly and conspicuously display the names of the top 3 donors who directly or indirectly donated $10,000 or more during the election cycle to the covered entity. This disclaimer shall include the following written statement: "[3 persons determined pursuant to subsection (b)] are the top 3 donors who helped pay for this message"; and

(2) Any public communication that has an audio component shall clearly and conspicuously state the names of the top 3 donors who directly or indirectly donated $10,000 or more during the election cycle to the covered entities. This disclaimer shall include the following audio statement: "[3 persons determined pursuant to subsection (b)] are the top 3 donors who helped pay for this message."

(b) The top 3 donors shall be determined by calculating the 3 donors of traceable funds that have contributed the most original funds, directly or indirectly, during the election cycle to the covered entities.

(1) For purposes of this subsection (b), contributions of traceable funds made in prior election cycles shall be considered to have been contributed in the current election cycle if the contributor's aggregate contributions of original funds to the covered entities constituted more than half of the person's traceable funds at the start of the election cycle.

(2) If multiple contributors have contributed identical amounts such that there is no difference in contributed amounts between the third-highest contributor and the fourth-highest or lower contributor, the contributor who most recently contributed to the covered entity shall be deemed a top 3 donor.

(3) No contributor of traceable funds shall be deemed a top 3 donor if its aggregate contributions of original funds during the election cycle to the covered entity are less than $10,000.

(4) If no person meets the $10,000 threshold in paragraph (3), but one or more intermediaries transferred, directly or indirectly, more than $10,000 of traceable funds to the covered entity during the election cycle, then such intermediaries' transfers shall be treated as original funds for purposes of the disclaimer required by this Section.

(10 ILCS 5/9-22) (from Ch. 46, par. 9-22)

Sec. 9-22.

(a) Any party to a Board hearing, any person who files a complaint on which a hearing was denied or not acted upon within the time specified in Section 9-21 of this Act, and any party adversely affected by a judgment of the Board may obtain judicial review, which shall be governed by the provisions of the Administrative Review Law, as amended, and all amendments and modifications thereof and the rules adopted pursuant thereto, except that--

(1) such judicial review shall be afforded directly in the Appellate Court for the District in which the cause of action arose and not in the Circuit Court,

(2) such judicial review shall be obtained by filing a petition for review within 7 days after entry of the order of other action complained of,

(3) the time limit for filing such petition for review may be waived with the consent of all parties involved, and

(4) if such petition for review is appealing an order of the Board, the effect of such order of the Board shall not be stayed unless the Appellate Court so orders upon the motion of the petitioner and upon prior notice to the Board.

(b) In reviewing the Board's dismissal of or failure to act upon a complaint, the court shall review de novo whether the Board's dismissal or failure to act was reasonable. The court shall disregard any claim or defense by the Board of prosecutorial discretion as a basis for dismissing or failing to act upon the complaint.

(Source: P.A. 82-783.)

(10 ILCS 5/9-28.5)

Sec. 9-28.5. Injunctive relief for election spending electioneering communications.

(a) Whenever the Attorney General, or a State's Attorney with jurisdiction over any portion of the relevant electorate, believes that any person, as defined in Section 9-1.6, is conducting election spending making, producing, publishing, republishing, or broadcasting an electioneering communication paid for by any person, as defined in Section 9-1.6, who has not first complied with the registration and disclosure requirements of this Article, he or she may bring an action in the name of the People of the State of Illinois or, in the case of a State's Attorney, the People of the County, against such person or persons to restrain by preliminary or permanent injunction the conducting of election spending making, producing, publishing, republishing, or broadcasting of such electioneering communication until the registration and disclosure requirements have been met.

(b) Any political committee that believes any person, as defined in Section 9-1.6, is conducting election spending making, producing, publishing, republishing, or broadcasting an electioneering communication paid for by any person, as defined in Section 9-1.6, who has not first complied with the registration and disclosure requirements of this Article may bring an action in the circuit court against such person or persons to restrain by preliminary or permanent injunction the conducting of election spending making, producing, publishing, republishing, or broadcasting of such electioneering communication until the registration and disclosure requirements have been met.

(c) Whenever the Attorney General, or a State's Attorney with jurisdiction over any portion of the relevant electorate, believes that any person, as defined in Section 9-1.6, is engaging in independent expenditures, as defined in this Article, who has not first complied with the registration and disclosure requirements of this Article, he or she may bring an action in the name of the People of the State of Illinois or, in the case of a State's Attorney, the People of the County, against such person or persons to restrain by preliminary or permanent injunction the making of such expenditures until the registration and disclosure requirements have been met.

(d) Any political committee that believes any person, as defined in Section 9-1.6, is engaging in independent expenditures, as defined in this Article, who has not first complied with the registration and disclosure requirements of this Article may bring an action in the circuit court against such person or persons to restrain by preliminary or permanent injunction the making of independent expenditures until the registration and disclosure requirements have been met.

(Source: P.A. 96-832, eff. 7-1-10; 97-766, eff. 7-6-12.)

(10 ILCS 5/9.50 new)

Sec. 9.50. Prohibition on structured contributions. No person shall, for the purpose of evading the reporting requirements of this Article or any rule adopted under this Article, structure or assist in structuring, or attempt to structure or assist in structuring, any solicitation, contribution, expenditure, disbursement, or other transaction. The penalty for any violation of this Section shall be a penalty of not less than the amount contributed or spent, and not more than the greater of double that amount or $10,000.

(10 ILCS 5/9-8.6 rep.)

Section 10. The Election Code is amended by repealing Section 9-8.6.