SB3899 101ST GENERAL ASSEMBLY

LRB101 20312 RJF 69855 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3899

Introduced 2/20/2020, by Sen. Sue Rezin

SYNOPSIS AS INTRODUCED:

5 ILCS 420/4A-102	from Ch. 127, par. 604A-102
5 ILCS 420/4A-102.5 new
5 ILCS 420/4A-103	from Ch. 127, par. 604A-103
5 ILCS 420/4A-103.5 new
5 ILCS 420/4A-108

Amends the Illinois Governmental Ethics Act. Provides revised disclosure of economic interest requirements for members of the General Assembly, candidates for nomination or election to the General Assembly, persons holding an elected office in the Executive Branch, and candidates for nomination or election to the Executive Branch. Makes conforming changes. Provides an applicability clause. Effective January 1, 2021.

A BILL FOR

AN ACT concerning government.

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

Section 5. The Illinois Governmental Ethics Act is amended by changing Sections 4A-102, 4A-103, and 4A-108 and by adding Sections 4A-102.5 and 4A-103.5 as follows:

(5 ILCS 420/4A-102) (from Ch. 127, par. 604A-102)

Sec. 4A-102. The statement of economic interests required by this Article shall include the economic interests of the person making the statement as provided in this Section. The interest (if constructively controlled by the person making the statement) of a spouse or any other party, shall be considered to be the same as the interest of the person making the statement. Campaign receipts shall not be included in this statement.

(a) Except as otherwise provided in this subsection, the The following interests shall be listed by all persons required to file:

(1) The name, address and type of practice of any professional organization or individual professional practice in which the person making the statement was an officer, director, associate, partner or proprietor, or served in any advisory capacity, from which income in excess of $1200 was derived during the preceding calendar year;

(2) The nature of professional services (other than services rendered to the unit or units of government in relation to which the person is required to file) and the nature of the entity to which they were rendered if fees exceeding $5,000 were received during the preceding calendar year from the entity for professional services rendered by the person making the statement.

(3) The identity (including the address or legal description of real estate) of any capital asset from which a capital gain of $5,000 or more was realized in the preceding calendar year.

(4) The name of any unit of government which has employed the person making the statement during the preceding calendar year other than the unit or units of government in relation to which the person is required to file.

(5) The name of any entity from which a gift or gifts, or honorarium or honoraria, valued singly or in the aggregate in excess of $500, was received during the preceding calendar year.

For statements filed in 2022 and after, instead of the interests listed in this subsection, members of the General Assembly, candidates for nomination or election to the General Assembly, persons holding an elected office in the Executive Branch, and candidates for nomination or election to the Executive Branch shall list the interests provided under Section 4A-102.5.

(b) Except as otherwise provided in this subsection, the The following interests shall also be listed by persons listed in items (a) through (f), item (l), item (n), and item (p) of Section 4A-101:

(1) The name and instrument of ownership in any entity doing business in the State of Illinois, in which an ownership interest held by the person at the date of filing is in excess of $5,000 fair market value or from which dividends of in excess of $1,200 were derived during the preceding calendar year. (In the case of real estate, location thereof shall be listed by street address, or if none, then by legal description). No time or demand deposit in a financial institution, nor any debt instrument need be listed;

(2) Except for professional service entities, the name of any entity and any position held therein from which income of in excess of $1,200 was derived during the preceding calendar year, if the entity does business in the State of Illinois. No time or demand deposit in a financial institution, nor any debt instrument need be listed.

(3) The identity of any compensated lobbyist with whom the person making the statement maintains a close economic association, including the name of the lobbyist and specifying the legislative matter or matters which are the object of the lobbying activity, and describing the general type of economic activity of the client or principal on whose behalf that person is lobbying.

For statements filed in 2022 and after, instead of the interests listed in this subsection, persons listed in items (a) and (b) of Section 4A-101 shall list the interests provided under Section 4A-102.5.

(c) The following interests shall also be listed by persons listed in items (a) through (c) and item (e) of Section 4A-101.5:

(1) The name and instrument of ownership in any entity doing business with a unit of local government in relation to which the person is required to file if the ownership interest of the person filing is greater than $5,000 fair market value as of the date of filing or if dividends in excess of $1,200 were received from the entity during the preceding calendar year. (In the case of real estate, location thereof shall be listed by street address, or if none, then by legal description). No time or demand deposit in a financial institution, nor any debt instrument need be listed.

(2) Except for professional service entities, the name of any entity and any position held therein from which income in excess of $1,200 was derived during the preceding calendar year if the entity does business with a unit of local government in relation to which the person is required to file. No time or demand deposit in a financial institution, nor any debt instrument need be listed.

(3) The name of any entity and the nature of the governmental action requested by any entity which has applied to a unit of local government in relation to which the person must file for any license, franchise or permit for annexation, zoning or rezoning of real estate during the preceding calendar year if the ownership interest of the person filing is in excess of $5,000 fair market value at the time of filing or if income or dividends in excess of $1,200 were received by the person filing from the entity during the preceding calendar year.

For the purposes of this Section, the unit of local government in relation to which a person required to file under item (e) of Section 4A-101.5 shall be the unit of local government that contributes to the pension fund of which such person is a member of the board.

(Source: P.A. 101-221, eff. 8-9-19.)

(5 ILCS 420/4A-102.5 new)

Sec. 4A-102.5. General Assembly and Executive Branch statements of economic interests. The economic interests required by this Article to be listed by persons specified in items (a) and (b) of Section 4A-101 shall be listed as provided in this Section. The interest (if constructively controlled by the person making the statement) of a spouse or any other party, shall be considered to be the same as the interest of the person making the statement. Campaign receipts shall not be included in this statement.

(a) Each statement of economic interests filed under this Section shall include a full and complete statement with respect to the following:

(1) The source, type, and amount or value of income from any source (other than from current employment by the State of Illinois), and the source, date, and amount of honoraria from any source, received during the preceding calendar year, aggregating $200 or more in value and the source, date, and amount of payments made to charitable organizations in lieu of honoraria, and the person making the statement shall simultaneously file with the applicable ethics officer, on a confidential basis, a corresponding list of recipients of all such payments, together with the dates and amounts of such payments.

(2) The source and type of income which consists of dividends, rents, interest, and capital gains, received during the preceding calendar year which exceed $200 in amount or value, and an indication of which of the following categories the amount or value of such item of income is within:

(A) not more than $1,000;

(B) greater than $1,000 but not more than $2,500;

(C) greater than $2,500 but not more than $5,000;

(D) greater than $5,000 but not more than $15,000;

(E) greater than $15,000 but not more than $50,000;

(F) greater than $50,000 but not more than $100,000;

(G) greater than $100,000 but not more than $1,000,000;

(H) greater than $1,000,000 but not more than $5,000,000; or

(I) greater than $5,000,000.

(3) The identity of the source, a brief description, and the value of all gifts aggregating more than $250, received from any source other than a relative of the person making the statement during the preceding calendar year, except that any food, lodging, or entertainment received as personal hospitality of an individual need not be disclosed, and any gift with a fair market value of $100 or less need not be aggregated for purposes of this paragraph (3).

(4) The identity of the source and a brief description, including a travel itinerary, dates, and nature of expenses provided, of reimbursements received from any source aggregating more than $250 and received during the preceding calendar year.

(5) The identity and category of value of any interest in property held during the preceding calendar year in a trade or business, or for investment or the production of income, which has a fair market value which exceeds $1,000 as of the close of the preceding calendar year, excluding any personal liability owed to the person making the statement by a spouse or by a parent, brother, sister, or child of the person making the statement or of his or her spouse, or any deposits aggregating $5,000 or less in a personal savings account.

For the purposes of disclosures made under this paragraph (5), the categories of value are as follows:

(A) not more than $15,000;

(B) greater than $15,000 but not more than $50,000;

(C) greater than $50,000 but not more than $100,000;

(D) greater than $100,000 but not more than $250,000;

(E) greater than $250,000 but not more than $500,000;

(F) greater than $500,000 but not more than $1,000,000;

(G) greater than $1,000,000 but not more than $5,000,000;

(H) greater than $5,000,000 but not more than $25,000,000;

(I) greater than $25,000,000 but not more than $50,000,000; and

(J) greater than $50,000,000.

For purposes of this paragraph (5), a personal savings account shall include any certificate of deposit or any other form of deposit in a bank, savings and loan association, credit union, or similar financial institution.

(6) The identity and category of value of the total liabilities owed to any creditor other than a spouse or a parent, brother, sister, or child of the person making the statement or of his or her spouse which exceed $10,000 at any time during the preceding calendar year. With respect to revolving charge accounts, only those with an outstanding liability which exceeds $10,000 as of the close of the preceding calendar year need be disclosed under this paragraph (6).

For the purposes of disclosures made under this paragraph (6), the categories of value are as follows:

(A) not more than $15,000;

(B) greater than $15,000 but not more than $50,000;

(C) greater than $50,000 but not more than $100,000;

(D) greater than $100,000 but not more than $250,000;

(E) greater than $250,000 but not more than $500,000;

(F) greater than $500,000 but not more than $1,000,000;

(G) greater than $1,000,000 but not more than $5,000,000;

(H) greater than $5,000,000 but not more than $25,000,000;

(I) greater than $25,000,000 but not more than $50,000,000; and

(J) greater than $50,000,000.

(7) A brief description, the date, and category of value of any purchase, sale, or exchange during the preceding calendar year which exceeds $1,000: in real property, other than property used solely as a personal residence of the person making the statement or his or her spouse; or in stocks, bonds, commodities futures, and other forms of securities. Disclosure is not required under this paragraph (7) of any transaction solely by and between the person making the statement, his or her spouse, or dependent children.

For the purposes of disclosures made under this paragraph (7), the categories of value are as follows:

(A) not more than $15,000;

(B) greater than $15,000 but not more than $50,000;

(C) greater than $50,000 but not more than $100,000;

(D) greater than $100,000 but not more than $250,000;

(E) greater than $250,000 but not more than $500,000;

(F) greater than $500,000 but not more than $1,000,000;

(G) greater than $1,000,000 but not more than $5,000,000;

(H) greater than $5,000,000 but not more than $25,000,000;

(I) greater than $25,000,000 but not more than $50,000,000; and

(J) greater than $50,000,000.

(8) The identity of all positions held on or before the date of filing during the current calendar year (and, for the first statement of economic interests filed by an individual, during the 2-year period preceding such calendar year) as an officer, director, trustee, partner, proprietor, representative, employee, or consultant of any corporation, company, firm, partnership, or other business enterprise, any nonprofit organization, any labor organization, or any educational or other institution other than the State of Illinois. This paragraph (8) shall not require the disclosure of positions held in any religious, social, fraternal, or political entity and positions solely of an honorary nature.

If any person, other than the State of Illinois, paid a nonelected person making the statement compensation in excess of $5,000 in any of the 2 calendar years prior to the calendar year during which the individual files his or her first statement of economic interests under this Section, the individual shall include in the statement: (A) the identity of each source of such compensation; and (B) a brief description of the nature of the duties performed or services rendered by the person making the statement for each such source.

This paragraph (8) shall not require any individual to include in the statement any information which is considered confidential as a result of a privileged relationship, established by law, between such individual and any person nor shall it require an individual to disclose any information with respect to any person for whom services were provided by any firm or association of which such individual was a member, partner, or employee unless such individual was directly involved in the provision of such services.

(9) A description of the date, parties to, and terms of any agreement or arrangement with respect to: (A) future employment; (B) a leave of absence during the period of employment with the State of Illinois of the person making the statement; (C) continuation of payments by a former employer other than the State of Illinois; and (D) continuing participation in an employee welfare or benefit plan maintained by a former employer.

(10) The category of the total cash value of any interest of the person making the statement in a qualified blind trust. For the purposes of disclosures made under this paragraph (10), the categories of value are as follows:

(A) not more than $15,000;

(B) greater than $15,000 but not more than $50,000;

(C) greater than $50,000 but not more than $100,000;

(D) greater than $100,000 but not more than $250,000;

(E) greater than $250,000 but not more than $500,000;

(F) greater than $500,000 but not more than $1,000,000;

(G) greater than $1,000,000 but not more than $5,000,000;

(H) greater than $5,000,000 but not more than $25,000,000;

(I) greater than $25,000,000 but not more than $50,000,000; and

(J) greater than $50,000,000.

(b) Each statement of economic interests required to be filed under this Section shall also contain the following information regarding the spouse or dependent child of the person making the statement:

(1) The source of items of earned income earned by a spouse from any person which exceed $1,000 and the source and amount of any honoraria received by a spouse, except that, with respect to earned income (other than honoraria), if the spouse is self-employed in business or a profession, only the nature of such business or profession need be reported.

(2) All information required to be disclosed under paragraph (2) of subsection (a) with respect to income derived by a spouse or dependent child, and all information concerning assets held by the spouse or dependent child and disclosed under paragraph (5) of subsection (a).

(3) In the case of any gifts received by a spouse or dependent child which are not received totally independent of the relationship of the spouse or dependent child to the person making the statement, the identity of the source and a brief description of gifts of transportation, lodging, food, or entertainment and a brief description and the value of other gifts.

(4) In the case of any reimbursements received by a spouse or dependent child which are not received totally independent of the relationship of the spouse or dependent child to the person making the statement, the identity of the source and a brief description of each such reimbursement.

(5) In the case of items described in paragraphs (5) through (7) of subsection (a), all information required to be reported under those paragraphs other than items: (A) which the person making the statement certifies represent the spouse's or dependent child's sole financial interest or responsibility and which the person making the statement has no knowledge of; (B) which are not in any way, past or present, derived from the income, assets, or activities of the person making the statement; and (C) from which the person making the statement neither derives, nor expects to derive, any financial or economic benefit.

(6) For purposes of this Section, categories with amounts or values greater than $1,000,000 set forth in subsection (a) shall apply to the income, assets, or liabilities of spouses and dependent children only if the income, assets, or liabilities are held jointly with the person making the statement. All other income, assets, or liabilities of the spouse or dependent children required to be reported under this Section in an amount or value greater than $1,000,000 shall be categorized only as an amount or value greater than $1,000,000.

(c) Each person making the statement shall disclose the information required under subsection (a) with respect to the holdings of and the income from a trust or other financial arrangement from which income is received by, or with respect to which a beneficial interest in principal or income is held by, such individual, his or her spouse, or any dependent child.

The person making the statement need not disclose the holdings of or the source of income from any of the holdings of: (1) a qualified blind trust; (2) a trust which was not created directly by the individual, his or her spouse, or any dependent child, and the holdings or sources of income of which such individual, his or her spouse, and any dependent child have no knowledge of; or (3) a widely held investment fund if the fund is publicly traded, or if the assets of the fund are widely diversified and the person making the statement neither exercises control over nor has the ability to exercise control over the financial interests held by the fund.

(5 ILCS 420/4A-103) (from Ch. 127, par. 604A-103)

Sec. 4A-103. Except as otherwise provided in Section 4A-103.5, the The statement of economic interests required by this Article to be filed with the Secretary of State shall be filled in by typewriting or hand printing, shall be verified, dated, and signed by the person making the statement and shall contain substantially the following:

STATEMENT OF ECONOMIC INTEREST

(TYPE OR HAND PRINT)

.............................................................

(name)

.............................................................

(each office or position of employment for which this statement is filed)

.............................................................

(full mailing address)

GENERAL DIRECTIONS:

The interest (if constructively controlled by the person making the statement) of a spouse or any other party, shall be considered to be the same as the interest of the person making the statement.

Campaign receipts shall not be included in this statement.

If additional space is needed, please attach supplemental listing.

1. List the name and instrument of ownership in any entity doing business in the State of Illinois, in which the ownership interest held by the person at the date of filing is in excess of $5,000 fair market value or from which dividends in excess of $1,200 were derived during the preceding calendar year. (In the case of real estate, location thereof shall be listed by street address, or if none, then by legal description.) No time or demand deposit in a financial institution, nor any debt instrument need be listed.

2. List the name, address and type of practice of any professional organization in which the person making the statement was an officer, director, associate, partner or proprietor or served in any advisory capacity, from which income in excess of $1,200 was derived during the preceding calendar year.

3. List the nature of professional services rendered (other than to the State of Illinois) to each entity from which income exceeding $5,000 was received for professional services rendered during the preceding calendar year by the person making the statement.

.............................................................

.............................................................

4. List the identity (including the address or legal description of real estate) of any capital asset from which a capital gain of $5,000 or more was realized during the preceding calendar year.

.............................................................

.............................................................

5. List the identity of any compensated lobbyist with whom the person making the statement maintains a close economic association, including the name of the lobbyist and specifying the legislative matter or matters which are the object of the lobbying activity, and describing the general type of economic activity of the client or principal on whose behalf that person is lobbying.

6. List the name of any entity doing business in the State of Illinois from which income in excess of $1,200 was derived during the preceding calendar year other than for professional services and the title or description of any position held in that entity. (In the case of real estate, location thereof shall be listed by street address, or if none, then by legal description). No time or demand deposit in a financial institution nor any debt instrument need be listed.

7. List the name of any unit of government which employed the person making the statement during the preceding calendar year other than the unit or units of government in relation to which the person is required to file.

.............................................................

.............................................................

8. List the name of any entity from which a gift or gifts, or honorarium or honoraria, valued singly or in the aggregate in excess of $500, was received during the preceding calendar year.

.............................................................

VERIFICATION:

"I declare that this statement of economic interests (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 my economic interests as required by the Illinois Governmental Ethics Act. I understand that the penalty for willfully filing a false or incomplete statement shall be a fine not to exceed $1,000 or imprisonment in a penal institution other than the penitentiary not to exceed one year, or both fine and imprisonment."

................ .......................................... (date of filing) (signature of person making the statement)

(Source: P.A. 95-173, eff. 1-1-08.)

(5 ILCS 420/4A-103.5 new)

Sec. 4A-103.5. General Assembly and Executive Branch filing. For statements filed in 2022 and after, members of the General Assembly, candidates for nomination or election to the General Assembly, persons holding an elected office in the Executive Branch, and candidates for nomination or election to the Executive Branch shall file statements of economic interests with the Secretary of State on forms prescribed by the Secretary that are substantially similar to forms developed for reporting information required to be disclosed by members of Congress and members of the federal Executive Branch under the federal Ethics in Government Act of 1978, as amended, and shall disclose the information required under Section 4A-102.5.

(5 ILCS 420/4A-108)

Sec. 4A-108. Internet-based systems of filing.

(a) Notwithstanding any other provision of this Act or any other law, the Secretary of State and county clerks are authorized to institute an Internet-based system for the filing of statements of economic interests in their offices. With respect to county clerk systems, the determination to institute such a system shall be in the sole discretion of the county clerk and shall meet the requirements set out in this Section. With respect to a Secretary of State system, the determination to institute such a system shall be in the sole discretion of the Secretary of State and shall meet the requirements set out in this Section and those Sections of the State Officials and Employees Ethics Act requiring ethics officer review prior to filing. The system shall be capable of allowing an ethics officer to approve a statement of economic interests and shall include a means to amend a statement of economic interests. When this Section does not modify or remove the requirements set forth elsewhere in this Article, those requirements shall apply to any system of Internet-based filing authorized by this Section. When this Section does modify or remove the requirements set forth elsewhere in this Article, the provisions of this Section shall apply to any system of Internet-based filing authorized by this Section.

(b) In any system of Internet-based filing of statements of economic interests instituted by the Secretary of State or a county clerk:

(1) Any filing of an Internet-based statement of economic interests shall be the equivalent of the filing of a verified, written statement of economic interests as required by Section 4A-101 or 4A-101.5 and the equivalent of the filing of a verified, dated, and signed statement of economic interests as required by Section 4A-104.

(2) The Secretary of State and county clerks who institute a system of Internet-based filing of statements of economic interests shall establish a password-protected website to receive the filings of such statements. A website established under this Section shall set forth and provide a means of responding to the items set forth in Sections 4A-102 and 4A-102.5 Section 4A-102 that are required of a person who files a statement of economic interests with that officer. A website established under this Section shall set forth and provide a means of generating a printable receipt page acknowledging filing.

(3) The times for the filing of statements of economic interests set forth in Section 4A-105 shall be followed in any system of Internet-based filing of statements of economic interests; provided that a candidate for elective office who is required to file a statement of economic interests in relation to his or her candidacy pursuant to Section 4A-105(a) shall receive a written or printed receipt for his or her filing.

A candidate filing for Governor, Lieutenant Governor, Attorney General, Secretary of State, Treasurer, Comptroller, State Senate, or State House of Representatives shall not use the Internet to file his or her statement of economic interests, but shall file his or her statement of economic interests in a written or printed form and shall receive a written or printed receipt for his or her filing. Annually, the duly appointed ethics officer for each legislative caucus shall certify to the Secretary of State whether his or her caucus members will file their statements of economic interests electronically or in a written or printed format for that year. If the ethics officer for a caucus certifies that the statements of economic interests shall be written or printed, then members of the General Assembly of that caucus shall not use the Internet to file his or her statement of economic interests, but shall file his or her statement of economic interests in a written or printed form and shall receive a written or printed receipt for his or her filing. If no certification is made by an ethics officer for a legislative caucus, or if a member of the General Assembly is not affiliated with a legislative caucus, then the affected member or members of the General Assembly may file their statements of economic interests using the Internet.

(4) In the first year of the implementation of a system of Internet-based filing of statements of economic interests, each person required to file such a statement is to be notified in writing of his or her obligation to file his or her statement of economic interests by way of the Internet-based system. If access to the website web site requires a code or password, this information shall be included in the notice prescribed by this paragraph.

(5) When a person required to file a statement of economic interests has supplied the Secretary of State or a county clerk, as applicable, with an email address for the purpose of receiving notices under this Article by email, a notice sent by email to the supplied email address shall be the equivalent of a notice sent by first class mail, as set forth in Section 4A-106 or 4A-106.5. A person who has supplied such an email address shall notify the Secretary of State or county clerk, as applicable, when his or her email address changes or if he or she no longer wishes to receive notices by email.

(6) If any person who is required to file a statement of economic interests and who has chosen to receive notices by email fails to file his or her statement by May 10, then the Secretary of State or county clerk, as applicable, shall send an additional email notice on that date, informing the person that he or she has not filed and describing the penalties for late filing and failing to file. This notice shall be in addition to other notices provided for in this Article.

(7) The Secretary of State and each county clerk who institutes a system of Internet-based filing of statements of economic interests may also institute an Internet-based process for the filing of the list of names and addresses of persons required to file statements of economic interests by the chief administrative officers that must file such information with the Secretary of State or county clerk, as applicable, pursuant to Section 4A-106 or 4A-106.5. Whenever the Secretary of State or a county clerk institutes such a system under this paragraph, every chief administrative officer must use the system to file this information.

(8) The Secretary of State and any county clerk who institutes a system of Internet-based filing of statements of economic interests shall post the contents of such statements filed with him or her available for inspection and copying on a publicly accessible website. Such postings shall not include the addresses or signatures of the filers.

(Source: P.A. 100-1041, eff. 1-1-19; 101-221, eff. 8-9-19; revised 9-12-19.)

Section 98. Applicability. The provisions of this amendatory Act of the 101st General Assembly concerning statements of economic interests shall apply to statements of economic interests filed in 2022 and for each year thereafter. Any statement of economic interest filed prior to 2022 shall apply the law in effect before the effective date of this amendatory Act of the 101st General Assembly.

Section 99. Effective date. This Act takes effect January 1, 2021.