SB1424sam001 100TH GENERAL ASSEMBLY

Sen. Daniel Biss

Filed: 2/28/2017

10000SB1424sam001 LRB100 08388 MLM 22497 a

AMENDMENT TO SENATE BILL 1424

AMENDMENT NO. ______. Amend Senate Bill 1424 by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be referred to as the Small Donor Democracy Matching System for Fair Elections Act.

Section 5. The Election Code is amended by changing Section 9-25.1 and by adding Article 9A as follows:

(10 ILCS 5/9-25.1) (from Ch. 46, par. 9-25.1; formerly Ch.

46, pars. 102, 103 and 104)

Sec. 9-25.1. Election interference.

(a) As used in this Section, "public funds" means any funds appropriated by the Illinois General Assembly or by any political subdivision of the State of Illinois.

(b) No public funds shall be used to urge any elector to vote for or against any candidate or proposition, or be appropriated for political or campaign purposes to any candidate or political organization. This Section shall not prohibit the use of public funds for dissemination of factual information relative to any proposition appearing on an election ballot, or for dissemination of information and arguments published and distributed under law in connection with a proposition to amend the Constitution of the State of Illinois. However, this Section does not apply to funds expended in connection with the campaign contribution matching program established in Article 9A of this Code or similar systems of public financing for elections established by a home rule unit of government.

(c) The first time any person violates any provision of this Section, that person shall be guilty of a Class B misdemeanor. Upon the second or any subsequent violation of any provision of this Section, the person violating any provision of this Section shall be guilty of a Class A misdemeanor.

(Source: P.A. 87-1052.)

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

ARTICLE 9A. CAMPAIGN CONTRIBUTION MATCHING

(10 ILCS 5/9A-5 new)

Sec. 9A-5. Legislative findings. The General Assembly find that the current campaign finance system:

(1) discourages many otherwise qualified candidates from running for office because of the need to raise substantial sums of money to be competitive and to enable them to adequately get their message out to voters;

(2) forces candidates to raise larger and larger percentages of money from interest groups that have a specific financial stake in matters before state government to keep pace with rapidly increasing campaign costs;

(3) diminishes elected officials' accountability to their constituents by compelling them to be disproportionately accountable to the relatively small group of contributors who finance their election campaigns;

(4) diminishes the rights of all citizens to equal and meaningful participation in the democratic process;

(5) disadvantages challengers, because campaign contributors tend to give their money to incumbents, thus causing elections to be less competitive;

(6) burdens candidates with the incessant rigors of fundraising and thus decreases the time available to carry out their public responsibilities; and

(7) necessitates the creation of a Fair Elections Small Donor Matching System to address these concerns.

(10 ILCS 5/9A-10 new)

Sec. 9A-10. Scope. The program created under this Article applies to candidates for the offices of Governor, Attorney General, State Comptroller, State Treasurer, Secretary of State, State Senator, and State Representative. Candidates for these offices are eligible to participate in the matching funds program established by this Article.

(10 ILCS 5/9A-15 new)

Sec. 9A-15. Definitions. As used in this Article:

"Board" means the Campaign Finance Board of the State Board of Elections created under this Article.

"Candidate" means any person who seeks nomination for election, election to, or retention in public office as a Constitutional State Officer or a member of the Illinois Senate or General Assembly. A person seeks nomination for election, election or retention if he or she (1) takes the action necessary under the laws of this State to attempt to qualify for nomination for election, election to, or retention in public office or (2) receives contributions or makes expenditures, or gives consent for any other person to receive contributions or make expenditures with a view to bringing about his or her nomination for election or election to or retention in public office.

"Contribution" has the meaning ascribed to it in Section 9-1.4 of this Code, but does not include anything deemed an independent expenditure under this Article.

"Coordination" means an expenditure made in cooperation, consultation, or concert with or at the request or suggestion of a candidate, an authorized committee of a candidate, a political committee of a political party, or agents of the candidate or candidate political committee, or any payment for any communication which republishes, disseminates or distributes, in whole or in part, any broadcast or any written, graphic, or other form of campaign material prepared by the candidate or his or her candidate political committee or their agents.

"Election cycle" means the time beginning the January 1 following a general election and ending on the December 31 following the next general election.

"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; or

(2) a payment, distribution, purchase, loan, advance, deposit, gift of money, or anything of value that constitutes 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 a transfer of funds by a political committee to another political committee.

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 as the Board may further define; or

(B) 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.

"Fund" means the Small Donor Democracy Matching Fund established under this Article.

"Immediate family" means a person's parents, siblings, spouse, and children.

"Independent expenditure" means an expenditure by anyone, including, but not limited to, any individual, corporation, partnership, political action committee, association, or party, that would otherwise constitute a contribution or expenditure under this Article, but that is made without any cooperation, consultation, or agreement with any political candidate.

"Initial qualifying contribution" means a qualified contribution used for the purpose of determining whether a candidate has raised the minimum number of contributions to participate in the small donor matching funds program under this Article.

"Matching funds" means funds paid to a participating candidate under this Article.

"Matching funds program" means the campaign donation matching program created under this Article.

"Nomination period" means the period specified under this Code during which candidates must submit nomination papers for any of the State offices covered by this Article.

"Non-participating candidate" means any candidate who is not a participating candidate, including any candidate who has not qualified for matching funds or who has elected not to participate in the matching funds program.

"Participating candidate" means a candidate who qualifies for matching funds under this Article and opts to participate in the matching funds program created under this Article.

"Qualified contribution" shall mean a monetary contribution not less than $25 and not greater than the initial $150 of any contribution made by a qualified contributor.

"Qualified contributor" means a natural person resident in the State who will be eligible to vote within the current election cycle other than the candidate, members of the candidate's immediate family, and any political action committee controlled by the candidate.

"Qualifying period" means the period beginning the day after the date of the most recent general election for the specific office or seat that a candidate is seeking and ending on the day prior to the election (whether primary or general election) for which the matching funds are sought.

(10 ILCS 5/9A-20 new)

Sec. 9A-20. Small Donor Democracy Matching Fund.

(a) There is created a Small Donor Democracy Matching Fund as a special fund in the State Treasury. The Fund is established for the purpose of:

(1) providing public financing for the election campaigns of participating candidates under this Article; and

(2) paying for the administrative and enforcement costs of the Board related to the matching funds program created by this Article.

(b) The General Assembly shall annually appropriate either $1 per resident of this State or one-twentieth of 1% of the State's annual budget, whichever is greater, to the Fund. The General Assembly shall appropriate no more than $50,000,000 to the Fund in any election cycle.

(c) Other revenue that shall be deposited into the Fund includes:

(1) any funds returned by any Participating Candidate that remain unspent by a Participating Candidate following the date of the election for which they were distributed, in accordance with subsection (c) of Section 9A-55 of this Code;

(2) fines levied by the Board or courts against candidates for violation of violations of this Code, except as otherwise provided by this Code; and

(3) voluntary donations made directly to the Fund.

(10 ILCS 5/9A-25 new)

Sec. 9A-25. Eligibility for matching funds.

(a) To be eligible to be certified as a participating candidate, a candidate must:

(1) during the qualifying period for the election involved, choose to participate in the matching funds program by filing with the Board a written application for certification as a participating candidate in such form as may be prescribed by the Board, containing the identity of the participating candidate, the office that the participating candidate seeks, and the participating candidate's signature, under penalty of perjury, certifying that:

(A) the participating candidate has complied since the last election or the adoption of this amendatory Act of the 100th General Assembly, whichever is most recent, and will continue to comply, with the restrictions of this Article during the applicable election cycle; a candidate who has accepted impermissible contributions prior to filing to participate in this program shall return any such impermissible contributions prior to filing to participate in this matching funds program to the extent practical, as determined by the Board in adopted rules;

(B) the participating candidate's campaign committee has filed all campaign finance reports required by law during the applicable election cycle to date and that they are complete and accurate; and

(2) sign a participating candidate contract signifying the candidate's prior compliance and continuing commitment to comply with the requirements of this Article, to comply with the contribution limits set forth in this Article and in that contract, and to comply with any other requirements set forth in that contract;

(3) meet all requirements of applicable law to be listed on the ballot; and

(4) before the close of the qualifying period, collect at least the following number of initial qualified contributions for the office in question:

(A) 1,000 qualified contributions for candidates for Governor;

(B) 500 qualified contributions for candidates for Lieutenant Governor, Attorney General, State Comptroller, State Treasurer, and Secretary of State;

(C) 200 qualified contributions for candidates for State Senator; and

(D) 100 qualified contributions for candidates for State Representative;

each initial qualified contribution shall:

(i) have the initial qualified contributor's signature, or an electronic equivalent for any donations received on-line, signifying that the initial qualified contributor understands that the purpose of the initial qualified contribution is to help the candidate qualify for the matching funds program and that the contribution is made without coercion or reimbursement; and

(ii) be acknowledged by a written receipt, or the electronic equivalent for any donation received on-line, to the initial qualified contributor, with a copy retained by the candidate; the receipt shall include the initial qualified contributor's signature, printed name, home address, and telephone number, if any, and the name of the candidate on whose behalf the contribution is made.

A contribution for which a candidate has not obtained a signed and fully completed receipt, or its electronic equivalent, shall not be counted as an initial qualified contribution for the purpose of satisfying this qualification requirement.

(b) In addition to the requirements of subsection (a) of this Section, in order for a candidate for Governor or Lieutenant Governor to be eligible to be certified as a participating candidate, the other member of the team of candidates for the offices of Governor and Lieutenant Governor must also be a participating candidate.

(c) To remain eligible to continue to receive matching funds under this Article, a candidate must:

(1) maintain records of all contributions, receipts, and expenditures as required by the Board;

(2) obtain and furnish to the Board any information it may request relating to his or her campaign expenditures, contributions, and qualified contributions and furnish any documentation and other proof of compliance with this Article as may be requested by the Board; and

(3) remain in compliance with the requirements set forth in this Article.

(d) At the earliest practicable time after a candidate files a written application for certification as a participating candidate with the Board, in no event exceeding 10 business days, the Board shall certify in writing that the candidate is or is not eligible. Eligibility may be revoked if the Board determines, after appropriate due process, that a candidate has committed a substantial violation of the requirements of this Article, in which case all matching funds granted to the candidate shall be repaid to the Fund. A determination shall be made by the Board after an appropriate hearing, affording due process to the aggrieved party, under rules to be adopted by the Board that further define what constitutes a "substantial violation" and that set forth the procedures to be followed in connection with any such hearing.

(10 ILCS 5/9A-30 new)

Sec. 9A-30. Matching funds payments.

(a) A candidate who is certified as a participating candidate shall receive payment of matching funds equal to 6 times the amount of qualified contributions received by the participating candidate during the election cycle with respect to a single election subject to the aggregate limit on the total amount of matching funds payments to a participating candidate specified in subsection (b) of this Section, unless the candidate has no opposition on the ballot. Unopposed candidates shall not be eligible to receive matching funds unless and until they cease to be unopposed; however, any candidate that had already received matching funds under this Article prior to becoming unopposed shall be entitled to retain those funds and spend those funds in accordance with Section 9A-50 of this Code.

(b) Subject to the requirements of subsection (a) of Section 9A-40 of this Code, the aggregate amount of matching funds payments that may be made to a participating candidate during an election cycle may not exceed the following:

(1) $5,000,000 for candidates for Governor;

(2) $1,000,000 for candidates for Lieutenant Governor, Attorney General, State Comptroller, State Treasurer, and Secretary of State;

(3) $300,000 for candidates for State Senator; and

(4) $150,000 for candidates for State Representative.

(c) A participating candidate's application for matching funds, including an initial request submitted with an application for certification as a participating candidate, shall be made using a form prescribed by the Board and shall be accompanied as necessary by initial qualified contribution receipts and any other information the Board requires by rule. This application shall be accompanied by a signed statement from the participating candidate indicating that all information on the initial qualified contribution receipts is complete and accurate to the best of the participating candidate's knowledge. The Board shall verify that a participating candidate's qualified contributions meet all of the requirements and limitations of this Article prior to the disbursement of matching funds to the participating candidate.

(d) The Board shall make an initial payment of the matching funds within 10 business days of the Board's certification of a participating candidate's eligibility in accordance with the provisions of this Article, or as soon thereafter as is practicable.

(e) The Board shall establish a schedule for the submission of matching funds payment requests, permitting a participating candidate submit a matching funds payment request at least once per month, in accordance with a schedule established by the Board.

(f) In the event that 90% of the existing Fund has been distributed, the Board shall give notice within 24 hours to all candidates that only 10% of the Fund remains. Thereafter, the Board shall make no further Matching Fund payments until after election day and it shall only pay any requests submitted after notice has been distributed under this subsection (f) proportionally, spread over all candidates and requests equally, in a manner to be determined in greater detail pursuant to rules adopted by the Board.

(10 ILCS 5/9A-35 new)

Sec. 9A-35. Limits on contributions.

(a) Subject to the requirements of subsection (a) of Section 9A-40 of this Code, no candidate shall accept, directly or indirectly, any contribution (or combination of contributions) from the same person, corporation, partnership, political party, political action committee or other legal entity in excess of $500. However, if a candidate in the participating candidate's race exceeds the self-funding thresholds established in subsection (h) of Section 9-8.5 of this Code for that race, the limitation under this subsection (a) is increased to $2,500.

(b) No participating candidate shall accept any contribution (or combination of contributions) from any person, corporation, partnership or other legal entity who lobbies members of the State executive or legislative branches, within the meaning of the Lobbyist Registration Act, or does business with the State. No participating candidate shall encourage, support, cooperate, or coordinate with any independent expenditure committee or any individual engaging in independent expenditures, whether in support of the candidate or in opposition to the candidate's opponent. The Board may adopt additional rules defining who constitutes a "lobbyist" and who is deemed to be "doing business" with the State within the meaning of this Article.

(c) No participating candidate shall make expenditures from or use his or her own personal funds or the personal funds or property held jointly with members of his or her immediate family in connection with his or her nomination for election or election, except as a contribution to his or her political committee in an amount that does not exceed 10 times the maximum contribution applicable under subsection (a) of this Section. No participating candidate shall make expenditures from or use other personal funds or property of his or her immediate family in furtherance of his or her own campaign.

(10 ILCS 5/9A-40 new)

Sec. 9A-40. Adjustment.

(a) The Board shall revise the limits on contributions and on overall contributions at least one year prior to the next general primary election. The Board shall adjust them by an amount equal to the change in the Consumer Price Index for all Urban Consumers for all items published by the United States Department of Labor for the 12-month calendar year preceding readjustment. Amounts shall be rounded to the nearest $10. The revised overall limits shall be published no later than one year prior to the date of the next general primary election.

(b) The General Assembly shall review the amounts and numbers of required initial qualifying contributions, the ratio of matching funds, the additional limits on contributions, and the limits on overall contributions in the 6-month period following each general election to determine if they shall stay the same, after any adjustment for inflation under subsection (a) of this Section, or be increased for the next general primary election and general election.

(c) If the General Assembly determines that any of the figures specified in subsection (b) of this Section should change, then any proposed change, other than an adjustment for inflation under subsection (a) of this Section, shall be adopted for the next general election by a majority vote of each chamber of the General Assembly and shall also be submitted to the voters via a binding referendum for ratification at the next consolidated election for approval or rejection with respect to any future general elections.

(10 ILCS 5/9A-45 new)

Sec. 9A-45. Campaign accounts for participating candidates. During an election cycle, each participating candidate shall conduct all campaign financial activities through a single political action committee, consistent subsection (b) of Section 9-2 of this Code, and shall comply with any additional record keeping requirements imposed under this Article by the Board.

(10 ILCS 5/9A-50 new)

Sec. 9A-50. Expenditures of matching funds.

(a) A participating candidate shall use matching funds only for direct campaign purposes. The Board may further define the phrase "direct campaign purposes" by rule.

(b) Neither a participating candidate nor anyone acting on his or her behalf shall use matching funds for:

(1) costs of legal defense in any campaign law enforcement proceeding;

(2) indirect campaign purposes, including, but not limited to:

(A) the participating candidate's personal support or compensation to the participating candidate or the participating candidate's immediate family;

(B) clothing, haircuts, and other items related to the participating candidate's personal appearance;

(C) a contribution or loan to the campaign committee of another candidate, a party committee, or other political committee;

(D) an independent expenditure;

(E) automobile purchases, tuition payments, or childcare costs;

(F) dues, fees, or gratuities at a country club, health club, recreational facility, or other nonpolitical organization unless part of a specific fundraising event that takes place on the organization's premises;

(G) admission to a sporting event, theater, concert, or other entertainment event not part of a specific campaign activity; or

(H) gifts, except for brochures, buttons, signs, and other campaign materials and token gifts valued at not more than $50 that are for the purpose of expressing gratitude, condolences, or congratulations.

(10 ILCS 5/9A-55 new)

Sec. 9A-55. Disclosure requirements and procedures; return of funds.

(a) Each participating candidate shall file reports of contribution receipts and of expenditures of matching funds and other campaign funds at such times and in such manners as the Board may prescribe by rule, including, but not limited to, reports containing information necessary to verify that the qualified contributions received by participating candidates and that the matching funds spent by participating candidates comply with the restrictions and requirements of this Article.

(b) The Board by rule shall adopt procedures for auditing any reports filed with it as well as related reports filed with the State Board of Elections and issuing a public report summarizing the election results, the campaign expenditures made in connection with offices covered by this Article, and the level and amount of matching funds provided to each campaign.

(c) Within 90 days after the consolidated or general election, every participating candidate who received matching funds under this Article shall repay the Fund any unused matching funds, calculated as follows: any unused campaign funds shall be multiplied by a ratio consisting of the total amount of matching funds received by the campaign in the numerator and the total amount of campaign funds raised by the campaign in the denominator. The amount of any repayment under this subsection (c) shall not exceed the total amount of matching funds paid to the campaign.

(10 ILCS 5/9A-60 new)

Sec. 9A-60. Joint campaign contributions and expenditures. Where multiple candidates are otherwise permitted under State law to engage in joint efforts to raise campaign contributions or in joint campaign expenditures, any contribution received at a joint fundraising event and any joint campaign expenditures shall be appropriately allocated among the participating candidates in a reasonable manner to be agreed upon by those candidates participating in the activity. The Board may review the reasonableness of any allocation under this Section.

(10 ILCS 5/9A-65 new)

Sec. 9A-65. Application of contribution and expenditure limitations to certain political activities. Nothing in this Article shall be construed to restrict candidates or their agents from making appearances at events sponsored or paid for by persons, political committees, or other entities that are not in any way affiliated with the candidate or any agent of the candidate. The costs of these events shall not be considered contributions to or expenditures by the candidate for purpose of this Article simply because the candidate or agent appears at such an event. However, this provision does not apply to events at which contributions are solicited on behalf of the participating candidate.

(10 ILCS 5/9A-70 new)

Sec. 9A-70. Campaign Finance Board; general powers and duties.

(a) A Campaign Finance Board is created within the State Board of Elections, consisting of 5 members appointed by the Governor with the approval of a majority of both the House of Representatives and the Senate. Each party or caucus represented in the General Assembly shall have at least one member on the Board. However, the Chairperson of the Board shall not be affiliated any political party. The initial appointments required under this subsection (a) shall be made within 6 months of the effective date of this amendatory Act of 100th General Assembly, and their terms shall commence on the January 1 following appointment. The terms of office for the initial appointees shall be, except for the Chairperson, determined by lot as follows:

(1) one member shall serve a term of one year;

(2) one member shall serve a term of 2 years;

(3) one member shall serve a term of 3 years;

(4) one member shall serve a term of 4 years; and

(5) the initial Chairperson shall serve a term of 5 years.

Thereafter, each member shall be appointed for a term of five years, according to the original manner of appointment. In the case of a vacancy in the office of a member, a member shall be selected to serve the remainder of the unexpired term in the same manner the vacating member was selected. Members shall serve no more than 3 consecutive terms. No member of the Board may be removed from office except for cause, after notice and a hearing by the Senate.

(b) To be eligible to serve as a member of the Board, an individual must meet all of the following qualifications throughout the period of his or her service:

(1) the member must be a resident of Illinois, eligible and registered to vote;

(2) the member must agree that he or she and any members of his or her immediate family will not make any contributions to any candidate for any of the offices eligible to receive matching funds during his or her term of service;

(3) the member must agree not to (i) serve as an officer of a political party or (ii) be a candidate or participate in any capacity in a campaign by a candidate for any of the offices eligible to receive public matching funds under this Article during his or her term of service;

(4) the member may not otherwise be an officer or employee of the State, nor a lobbyist engaged in lobbying any elected officials of the State; and

(5) the member must agree to undergo training under the supervision of the chairperson of the Board.

(c) Subject to appropriations, the members of the Board shall be compensated at a rate specified by law while performing the work of the Board.

(d) The Board may employ necessary staff, including attorneys and accountants, and may utilize the services of employees of the State Board of Elections to assist the Board in carrying out its duties. Subject to appropriations, the total budget for the Board's operations shall not be less than .01% of the overall State budget.

(e) The Board shall have the authority to adopt rules and provide forms as it deems necessary to administer the matching funds system created by this Article. The Board shall adopt rules concerning the form in which contributions and expenditures are to be reported, the periods during which such reports must be filed, the measures for auditing and reporting on campaign contributions and expenditures and the verification required.

(f) The Board shall have the power to investigate all matters relating to the performance of its functions and any other matter relating to the proper administration of this Article. It shall have the power to require the attendance of witnesses, to examine and take testimony under oath of any persons as it shall deem necessary, and to require the production of books, accounts, papers, and any other relevant evidence relative to such investigation.

(g) The Board shall develop a program for informing candidates and the public about the small donor matching funds system created by this Article. The Board may prepare and make available educational materials, including compliance manuals and summaries of the relevant provisions of this program. The Board shall prepare and make available materials including, to the extent feasible, computer software, to facilitate the task of compliance with the disclosure and record-keeping requirements under this Article.

(h) The Board shall have the power to render advisory opinions with respect to questions arising under this Article. These opinions may be requested in writing by any candidate, political committee, member of the general public, or member of the Board. The Board shall adopt rules regarding submissions and responses to such requests, including response times. The Board shall make public its response to any such requests, as well as to any other formal rulings or interpretations it makes, including by posting them on its website, if practicable.

(i) The Board shall have the authority to implement any system established for the regulation of inauguration and transition donations and expenditures, including any related penalties. It shall also have the authority to adopt and implement a system for handling the transition from the existing campaign finance system and any pre-existing political committees and contributions to the small donor matching funds system implemented by this Article.

(j) The Board may take such other actions as are necessary and proper to carry out its functions and the purposes of adoption of a small donor matching funds system. The specific grants of power under this Section do not constitute and shall not be construed as limitations on the other proper and necessary powers of the Board.

(k) All final administrative decisions under this Article are subject to judicial review under the Administrative Review Law and its rules.

(10 ILCS 5/9A-75 new)

Sec. 9A-75. Public campaign financing program penalties.

(a) If a participating candidate knowingly accepts or spends matching funds in violation of this Article, then the candidate shall repay to the Fund a civil fine in an amount equal to twice the value of the funding unlawfully accepted or spent.

(b) The Board shall, after a hearing affording the aggrieved party due process, have the authority to impose the fine created by this Section, to order repayment of overpayments that were not knowingly received, and to take any other appropriate action, pursuant to any additional rules concerning such hearings as the Board shall adopt.

(c) Any member of the public, as well as the Board on its own initiative, shall have standing to file a complaint with the Board alleging a violation of this Article. In the event a complaint is filed by an opposing Candidate, or in coordination with an opposing Candidate's campaign, the Board shall have the option of awarding costs and attorneys' fees in the event the complaint is found to have been lacking a reasonable basis.

(d) The Board shall adopt appropriate rules guaranteeing notice and due process to anyone accused of violating this Article and setting forth the process the Board will follow in investigating and adjudicating any such complaint.

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 upon becoming law.".